NEWSLETTER-2017

64 NEWSLETTER 2017 Right to Information and Inspection by the Shareholders in Limited Liability Companies* Att. Cansu Ozsan The purpose of natural and legal entities in bringing funds into a company is to invest for profit sharing. The right to information and inspection by the shareholders is of great importance in terms of en- abling the shareholders to audit the ability of the company to achieve those goals, and to exercise another partnership rights. For limited liability companies, which is the most common form of business in Turkey, this right is regulated under Article 614 of Turkish Commercial Code numbered 6102 (“TCC”). This Newsletter article examines the limitations to the right to information and inspec- tion by the shareholders in limited liability companies, and aims to raise shareholders’ awareness 1 . The Essence of the Right to Information and Inspection In contrast to joint stock companies, the transfer of shares in limited liability companies is subject to stricter provisions, and the ap- proval of the general assembly is mandatory. For this reason, auditing becomes more valuable for shareholders in limited liability compa- nies. According to Article 614 of the TCC (“Article”), which regulates the right to information and inspection by the shareholders in limited liability companies: (1) Each shareholder may request information about all company business and accounts from managers and can conduct inspections regarding certain matters. * Article of November 2017 1 Please see the Newsletter article of October 2015 for further information on the right to information and inspect in joint stock companies: http://www.erdem - erdem.av.tr/publications/law-post/right-to-request-information-of-the-sharehold- ers-in-joint-stock-companies/ (access date: 29.11.2017).