ON THE EFFECTIVENESS OF THE RIGHT TO RECEIVE DIVIDENDS IN JOINT-STOCK AND LIMITED LIABILITY COMPANIES
Articles > Article · 2026
Authors: Cihan ZEYREK
Türkiye Barolar Birliği Dergisi, Other Refereed National Journals, National, TR DİZİN (ULAKBİM), 2026, pp 235-280
Summary
<p><span style="color: rgb(0, 0, 0);">The right to receive dividends, though essential in joint-stock and limited liability companies, lacks sufficient legal protection and practical effectiveness. Amendments to the Turkish Commercial Code have disrupted coherence, especially in limited company provisions. While a general assembly resolution is required for this right to arise, exceptional cases may justify judicial intervention. Existing remedies against non- or minimal distribution are inadequate, particularly for shareholders not even forming a “minority”. Courts should, based on good faith principle and reasonable commercial judgment, be authorized to determine dividend distribution when necessary, ensuring shareholder protection, procedural efficiency, and fairness in individual cases.</span></p>