ERDEM-NEWSLETTER-2018-metin

61 COMMERCIAL LAW under Article 6 of the Communiqué, the remedial measures that may be submitted by the board of directors are exemplified, as follows: • Completion of the capital amount deemed appropriate by the board of directors; • Capital increase; • Closure or reduction of certain production units or depart- ments; • Sale of subsidiaries; and • Alteration on marketing system. When Two-Thirds of the Total of the Capital and Legal Reserves are Uncovered Pursuant to Article 376/2 of the TCC, in the event that it appears from the last year’s balance sheet that two-thirds of the total of the capital and legal reserves are uncovered due to loss, and the general assembly which is invited to the meeting, resolves neither to continue with one-third of the capital, nor to complete the capital, the company is automatically terminated. Pursuant to Article 7 of the Communiqué, in the event that two- thirds of the total of the capital and legal reserves are uncovered, the General Assembly may resolve, as follows: • Continuation with one-third of the capital, and to oversee a capital decrease, in accordance with Articles 473-475 of the TCC ; • Completion of the uncovered capital amount, or • Capital increase. The TCC does not a grant capital increase option to the compa- nies in the event that two-thirds of the total of the capital and legal reserves are uncovered. However, companies falling under this clause had been conducting capital decreases and capital increases, simulta- neously, in accordance with the method presented in the preambles of