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Insolvency situation and its consequences in joint stock companies

Title	Insolvency situation and its consequences in joint stock companies
Author	Kök, Ecem
Publication Date:	2023-02-13T12:42:40Z
Type	Document
Language	Turkish
Digital	Yes
Manuscript	No
Library:	Özyeğin University
Record ID	4975a258-4c02-4000-94d3-89d000df7dfe
Library Location	Department of Private Law
Date	2023-02-13T12:42:40Z
Sample Text	The principle of capital protection is one of the fundamental principles of company law. In order to ensure this principle for joint stock companies and due to the impact it has on both the company, its creditors and its partners, some regulations have been made in the law regarding the protection of assets. It is normal for a joint stock company's financial situation to deteriorate for some reasons. One of these financial situation deteriorations is being in debt. Insolvency, which can be defined as the situation where the company's assets are not sufficient to cover its debts, is regulated by the law and brings with it certain obligations and consequences, as it negatively affects both the company, the company's creditors, the company's partners and the public. 376/3 of the Turkish Commercial Code. In the provision, it is regulated that the board of directors should issue an interim balance sheet in case there are some signs that the company is in a state of insolvency, and if it is understood from the interim balance sheet that the company's assets are not sufficient to cover its debts, the board of directors should notify this situation to the commercial court of first instance where the company headquarters is located and request the bankruptcy of the company. The result attributed to insolvency is the bankruptcy of the company, which is the reason for the termination of the company. If, in the examination to be carried out by the court upon notification of insolvency, it is determined that the company is actually insolvent, the court declares the company bankrupt. However, with some methods, it is possible for the company to be saved from the bankruptcy decision due to its indebtedness. The first part of our study, which consists of three parts, consists of deteriorations in the financial structure of joint stock companies, the second part consists of the situation of being in debt in general, what to do in case of insolvency and the liability arising from insolvency, and the last part consists of bankruptcy as a result of insolvency and the methods that can be used to prevent the bankruptcy decision., The principle of maintenance of capital is one of the fundamental tenets of corporate law. To ensure this principle for joint-stock companies, some regulations have been made in the law on the protection of assets due to the impact it has on the company, its creditors, and shareholders. It is natural for a joint-stock company to deteriorate due to several reasons. One of these financial deteriorations is insolvency. Insolvency can be defined as the inability of the company's assets to meet its debts, it has been regulated separately in the law, as it adversely affected both the company, the company's creditors, the company's shareholders, and the public, and brought some obligations and consequences with it. According to the article 376 subsection 3 of the Turkish Commercial Code, if there are some indications that the company is in debt, the board of directors should issue an interim balance sheet, and if it is understood from the interim balance sheet that the assets of the company are not sufficient to meet its debts, this situation is should be reported to the commercial court of the first instance where the company headquarters is located and the bankruptcy of the company should be requested from the court by the board of directors. The result attributed to insolvency is bankruptcy, which is the reason for the termination of the company. If the court determines that the company is indeed in insolvency, in the examination to be made by the court upon the insolvency notice, it decides the bankruptcy of the company. However, it can be said that with some methods, it is possible for the company to be saved from the bankruptcy decision due to its insolvency situation. This study consists of three parts, the first part of this study is about the deterioration in the financial position of joint-stock companies, the second part is about the actions to be taken in the case of insolvency and the liability arising from the insolvency, the last part consists of bankruptcy as a result of insolvency and the methods that can be applied to prevent the bankruptcy decision.

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Özyeğin University

Insolvency situation and its consequences in joint stock companies

Author Kök, Ecem

Publication Date 2023-02-13T12:42:40Z

Type Document

Language Turkish

Digital Yes

Manuscript No

Library Özyeğin University

Record ID 4975a258-4c02-4000-94d3-89d000df7dfe

Library Location Department of Private Law

Date 2023-02-13T12:42:40Z

Sample Text The principle of capital protection is one of the fundamental principles of company law. In order to ensure this principle for joint stock companies and due to the impact it has on both the company, its creditors and its partners, some regulations have been made in the law regarding the protection of assets. It is normal for a joint stock company's financial situation to deteriorate for some reasons. One of these financial situation deteriorations is being in debt. Insolvency, which can be defined as the situation where the company's assets are not sufficient to cover its debts, is regulated by the law and brings with it certain obligations and consequences, as it negatively affects both the company, the company's creditors, the company's partners and the public. 376/3 of the Turkish Commercial Code. In the provision, it is regulated that the board of directors should issue an interim balance sheet in case there are some signs that the company is in a state of insolvency, and if it is understood from the interim balance sheet that the company's assets are not sufficient to cover its debts, the board of directors should notify this situation to the commercial court of first instance where the company headquarters is located and request the bankruptcy of the company. The result attributed to insolvency is the bankruptcy of the company, which is the reason for the termination of the company. If, in the examination to be carried out by the court upon notification of insolvency, it is determined that the company is actually insolvent, the court declares the company bankrupt. However, with some methods, it is possible for the company to be saved from the bankruptcy decision due to its indebtedness. The first part of our study, which consists of three parts, consists of deteriorations in the financial structure of joint stock companies, the second part consists of the situation of being in debt in general, what to do in case of insolvency and the liability arising from insolvency, and the last part consists of bankruptcy as a result of insolvency and the methods that can be used to prevent the bankruptcy decision., The principle of maintenance of capital is one of the fundamental tenets of corporate law. To ensure this principle for joint-stock companies, some regulations have been made in the law on the protection of assets due to the impact it has on the company, its creditors, and shareholders. It is natural for a joint-stock company to deteriorate due to several reasons. One of these financial deteriorations is insolvency. Insolvency can be defined as the inability of the company's assets to meet its debts, it has been regulated separately in the law, as it adversely affected both the company, the company's creditors, the company's shareholders, and the public, and brought some obligations and consequences with it. According to the article 376 subsection 3 of the Turkish Commercial Code, if there are some indications that the company is in debt, the board of directors should issue an interim balance sheet, and if it is understood from the interim balance sheet that the assets of the company are not sufficient to meet its debts, this situation is should be reported to the commercial court of the first instance where the company headquarters is located and the bankruptcy of the company should be requested from the court by the board of directors. The result attributed to insolvency is bankruptcy, which is the reason for the termination of the company. If the court determines that the company is indeed in insolvency, in the examination to be made by the court upon the insolvency notice, it decides the bankruptcy of the company. However, it can be said that with some methods, it is possible for the company to be saved from the bankruptcy decision due to its insolvency situation. This study consists of three parts, the first part of this study is about the deterioration in the financial position of joint-stock companies, the second part is about the actions to be taken in the case of insolvency and the liability arising from the insolvency, the last part consists of bankruptcy as a result of insolvency and the methods that can be applied to prevent the bankruptcy decision.