09 Feb According to the Turkish Commercial Code, in the case of the starting a liquidation process of companies established in Turkey, a Liquidator must be selected and this officer must be a citizen of Republic of Turkey.

When a foreign capital firm begins the liquidation process, the obligation of the elected liquidator to be a Turkish citizen must be abolished for 2 reasons.

1- INCONVENIENCES IN TERMS OF FOREIGN INVESTORS

Although the company goes into liquidation, it may own real estate, vehicles, unsold products, etc. There may be receivables that have not been collected yet. Why should the foreign investor have to give such an important and critical authority to a Turkish Citizen?

He will hand over all the assets, receivables and bank accounts of the company to someone who has no affiliation with the company only due to legal obligation. How will he trust this person? How can he protect his own rights?

2- INCONVENIENCES IN TERMS OF TURKISH LIQUIDATION OFFICER

Most likely, the foreign investor will not find anyone and ask his accountant to be the Liquidator. However, as it is forbidden according to the Financial Consultancy Code, this door will also be closed. Why would an accountant or anyone accepts an obligation that he would be responsible for all debts of the company, even if the law allows?

As of the government, you allow the foreign investor to start a company, to operate for many years and to enter into a debt-to-loan relationship, and it should continue to rely on the liquidation process that will last for 6 months.

It is not logical and fair to ask a citizen to take a risk that the government does not take.