Fatih Cemal

Removing Partners in Limited Liability Companies in Turkish Law

Removing Partners in Limited Liability Companies in Turkish Law

There are 3 different ways to end of partnership tittle of partners in Limited Liability Companies: share transfer, expulsion and removal. 

Before the new Turkish Commercial Code, expulsion could be by General Counsel of Partnership decision or court order. To be decided by General Counsel of Partnership, this rule must be written in essence agreement of Partnership. However, Removal of Partnership could be by court order. It must be depended on justifiable reasons, that justifable reasons could be described by essence agreement more than specific. 

In the new Turkish Commercial code , it still uses same system with couple changes, you have still 3 ways to end of partnership title of partners : share transfer, expulsion and removal.

The new code has protected procedure on share transfers and expulsion but it gave a new way to remove a partner. A partner could be removed from Partnership by General Counsel of Partnership decision or court order. To remove by partnership decision ,it must be written ın essence agreement, but the reasons of removal don't need to depend on justifiable reasons. To remove partner with court order, it must be depended on justifiable reasons.

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