Law No. 7499 on the Amendment of the Criminal Procedure Law and Certain Laws (“Law“) published in the Official Gazette dated 12 March 2024 and numbered 32487 and the Enforcement and Bankruptcy Law No. 2004 (“İİK“), Law No. 6100 on Civil Procedure (“HMK“), Law No. 6502 on Consumer Protection (“TKHK“), Law No. 5326 on Misdemeanours (“Misdemeanour Law“), and Criminal Procedure Code No. 5271 (“CMK“).
1. Voluntary Termination and Initiation of Liquidation Procedure
Under Turkish law, the termination of a corporation may be due to various reasons (e.g., merger, division, voluntary termination). In case of voluntary termination, a general assembly resolution for the termination is required. If and when a corporation decides on the termination voluntarily, the liquidation procedure must be initiated and exhausted.
Insolvency proceedings and avoidance actions play a significant role in safeguarding creditors' interests and maximising the insolvency estate in Türkiye. The European Commission's Proposal for a Directive (COM (2022)702) aims to harmonise contestation rights in insolvency across EU member states. Although Türkiye is not an EU member states, Türkiye has similar avoidance actions regulated under its own insolvency legislation, the Turkish Enforcement and Bankruptcy Law (EBL).
Overview
On 7 December 2022, the European Commission published a draft directive aimed at harmonizing certain aspects of insolvency law. The intention behind this directive is to mandate the inclusion of "pre-pack proceedings" in national insolvency laws across the European Union ("EU"). Although Türkiye is not a member of the EU and does not have specific rules for governing pre-pack insolvency sales, it does have procedures that are similar, if not an identical, to pre-pack proceedings.
In this article we will take a closer look at Türkiye's pre-pack-like institution.
In practice, bankruptcy of a defendant employer during court proceedings related to employee receivables may be confusing for both the parties of a dispute and the courts handling the proceedings.
Yargıtay, yakın zamanda verdiği 08.02.2022 tarihli ve 2022/64 E., 2022/1438 K. sayılı kararda işçilik alacaklarının tahsili talebiyle açılan bir davada davalı işverenin yargılama devam ederken iflas etmesi halini incelemiştir.
Below, please find some information on the main private law amendments introduced pursuant to Law on the Amendment of the Enforcement and Bankruptcy Law and Certain Laws (the "Law"), published in the Official Gazette dated 5 April 2023.
The Latest Amendments to the Enforcement and Bankruptcy Law
Kamuoyunda 7. Yargı Paketi olarak anılan 7445 sayılı İcra ve İflas Kanunu ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun (“Kanun”), 5 Nisan 2023 tarihli ve 32154 sayılı Resmî Gazete’de yayımlanmış ve yürürlüğü sonraya bırakılan birtakım düzenlemeler dışında yürürlüğe girmiştir.
İcra hukuku, ceza hukuku ve usul hukukuna yönelik çeşitli düzenlemelerin yer aldığı Kanun kapsamında, dava şartı arabuluculuğun kapsamının önemli ölçüde genişletildiği görülmektedir. Kanun kapsamında ön plana çıkan düzenlemelere aşağıda yer verilmektedir.
The Law Amending the Enforcement and Bankruptcy Law and Certain Laws ("Amendment Law"), known as the 7th Judicial Package, was published in the Official Gazette (32154) dated 05 April 2023 and entered into force except for several provisions with later effective dates.
The Amendment Law sets out several changes in the fields of enforcement law, criminal law, and procedural law, and it expands the scope of mandatory mediation significantly. Some of the prominent amendments introduced by the Amendment Law are examined below:
Arbitration
Jurisdiction is a power of the state that is exercised through its courts. However, parties to a legal relationship may, under certain conditions, choose to submit the resolution of disputes to natural persons called arbitrators, rather than to the state's jurisdiction, through a mutual agreement.