NEWSLETTER-2019-metin

Recent Developments on Corporate Governance Compliance Reporting* Att. Nezihe Boran Introduction The Capital Markets Board of the Republic of Turkey (“Board”) has initiated preliminary discussions with companies in 2016 and has commenced its studies in respect of corporate governance compliance reporting. In June of 2018, the Board, together with the consultancy of an International Finance Institution, has launched the new prac- tice for corporate governance compliance reporting, and prepared the pilot study in October of 2018. The Board issued a press release on 11 January 2019 with respect to its resolution dated 10 January 2019 and numbered 2/49. It is set forth under the referred resolution that the corporate governance compliance reporting made according to the Communiqué on Corporate Governance numbered II-17.1 (“Com- muniqué”) shall hereinafter be performed as per the templates of the corporate governance compliance report and the corporate governance information form. This newsletter will mainly focus on the templates and the procedural requirements. The Templates Although the templates, which require public disclosure of corporate governance compliance, looks as if a new practice, only a procedural change has been made. In other words, the Board formerly required companies to disclose their corporate governance compliance under activity reports. Instead of disclosure under activity reports, the Board has announced two separate templates to be used going forward, those being the corporate governance compliance report (“Compliance Report”) and the corporate governance information form (“Informa- * Article of February 2019