Share transfer

A share transfer passes a shareholder's stake in a Turkish company, together with the attached rights such as voting and dividends, to another person.

Formal requirements depend on the company type. In joint-stock companies, certificated shares are in principle transferred with relative ease, whereas in limited liability companies a transfer requires a written agreement, official certification and, as a rule, approval by the general assembly, followed by registration with the trade registry. The articles of association may impose additional transfer restrictions.

The most common pitfall is assuming that a transfer made without the required formalities is valid. Defective transfers can expose the parties and the company to prolonged disputes, and the company's debts and public liabilities should be reviewed before any transfer.