The Constitutional Court Decision on the Cancellation of the Presidential Decree Regarding Executive Committee for Industrialization Article 4/3(e) Has Been Published

The Constitutional Court Decision dated 01.06.2022 and numbered 2020/94 E. 2022/61 K. (Decision) has been published in the Official Gazette dated 18.08.2022 and numbered 31927. With the Decision, the Presidential Decree dated 13.10.2020 and numbered 68 Regarding Executive Committee for Industrialization (ECI) (Decree) Article 4/3(e) is cancelled.

Article 4/3(e) of the Decree in question authorized the ECI to take decisions on changes in the shareholding structures of companies deemed to be of critical importance for the country, if it is assessed that such changes may jeopardize the continuity of domestic production and national security.

In the Decision, the Constitutional Court determined that the ECI is a sui generis administrative unit within the central administration, which does not have a public legal entity and not included in the organization of the Presidency or any ministry. Drawing attention to Article 123 of the Constitution, which stipulates that the establishment of the administration and its duties and powers shall be regulated by law, the Constitutional Court concluded that the EIC is not included in the Presidential or any ministerial organization and therefore the authority to take decisions on company shareholding structures set forth in Article 4/3(e) of the Decree should be regulated by law rather than a presidential decree. Due to the stated reasons, the Constitutional Court ruled by majority for the cancellation of the Article 4/3(e) of the Decree.