Capital Increase Transactions (Transactions regarding the Increase of Capital)

Authorized capital system;pursuant to the Capital Markets Board Law, publicly held companies (Joint Stock Companies whose shares have been offered to the public and/or that has more than 250 shareholders) may adopt authorized capital system, providing that they obtain the permission of the Capital Markets Board. In this system, the board of directors (executive board or administrative body) may increase the capital of the company by issuing new shares up to the amount of authorized capital stated in the articles of association (founding charter) without complying with the provisions of the Turkish Commercial Code in respect to capital increases.

Conditions of the authorized capital system are given as follows;
- must be stated in the articles of association (founding charter),
- conditions stated in the Capital Markets Board communique must be fulfilled,
- in order to issue new shares, previously issued shares must completely be sold and this situation must be stated,
- Approval (authentication) of Capital Markets Board is a must,

Principal (registered) capital system ; in this system there is no upper limit of the capital. Company’s paid-in capital is increased pursuant to the decree of the General Assembly and in the amount of increase as stated at the specified period for only once.

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