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TÜSİAD urges gov’t to review draft law seeking more authority on trustee appointment

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The Turkish Industrialists and Businessmen’s Association (TÜSİAD) has urged Turkish government to review a draft law that seeks to broaden the government’s authority to appoint boards of trustees to companies, warning that it might lead to serious consequences.

“We think a draft law such as this – that might have important and grave results – must be prepared with the participation of necessary authorities and as a result of a long and careful evaluation process,” TÜSİAD said in a press release on Friday.

The association also pointed out the risks of the draft law, which they regard as not prepared as a result of a carefully carried out process, referring to the crimes that are to be added to the list that necessitate appointment of trustees.

The risks were listed as, “1. Risk of [newly added crimes’] inconsistency with other crimes stated in Article 133 of [Code on Criminal Procedure] CMK. 2. The negative effects of broadening of the authority to appoint trustees on business world and the risk of violating right of property. 3. The risk of destroying internal integrity of the Capital Market Law and creating dichotomy. 4. The fact that there is no need for more precautions as similar options are already included in the Capital Market Law. 5. Risks regarding the law technique and rulings of procedure.”

With the new regulation, the partnership shares or administrative authorities of the assets and bonds of a company to which a trustee panel has been appointed will be transferred to the trustee.

Opposition politicians and academics in Turkey also condemned the draft law, emphasizing that it might be used as a “political weapon” by the ruling Justice and Development Party (AK Party) government.

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