NEWSLETTER-2020-metin

80 NEWSLETTER 2020 of Article 479 ( Shares with Voting Right Priviledges ) of the Turkish Commercial Code 2 (“TCC ”) voting right priviledge means providing different amounts of voting rights to the shares with the same nominal value. Moreover, the definition of the priviledge regarding representa- tion on boards of directors as per the first paragraph of Article 360 ( Representation of Specific Groups in the Board of Directors ) of the TCC has been referred to under the Communiqué, as well. Accord- ingly, a representation right on boards of directors may be granted to specific share groups, to the shareholders that constitute certain groups as per their features of qualifications and minority standing. The shares granted by such rights would deemed to be privileged shares. If privileged shares are held by public institutions or organisations, then the provisions of the Communiqué or the Capital Markets Law shall not apply to those shares. In accordance with Article 10 ( Exemp- tion ) of the Communiqué, if only a certain part of the privileged shares are held by public institutions or organisations, then the provisions of the Communiqué or the Capital Markets Law shall not apply only for such shares, and the priviledges over the other privileged shares may be abolished through a Board decision. Removal of Priviledges As per the Capital Markets Law and the Communiqué, the priviledges for the voting rights and representation on the board of directors of publicly held companies that have suffered losses for five consecutive years according to its financial statements, and prepared in line with the legislation, may be removed through a Board decision. Reasonable and Mandatory Situations If the actions that have given rise to the losses suffered for five consecutive years according to its financial statements have originated due to reasonable and mandatory events, then the priviledges may not be abolished. As per Article 6 ( Exception due to the Activities that incurred due to Reasonable and Mandatory Situations ) the publicly held companies that have suffered losses for five consecutive years, may communicate the reasons related to the reasonable and mandatory 2 Turkish Commercial Code No. 6102, OG No. 27846, 14.02.2011.