Official Letter to the Union of Chambers and Commodity Exchanges of Türkiye Regarding the Assessment of Membership Duration in Case of Change of Type
An opinion has been requested on the preservation of chamber membership durations of members who change their type.
In accordance with Law No. 5174 on the Union of Chambers and Commodity Exchanges of Türkiye and Chambers and Commodity Exchanges and the relevant regulatory provisions, the eligibility to vote and to stand for election in chamber and exchange organ elections is clearly regulated, and in order to participate in organ elections, membership is required to have continued for a certain period.
In applications recently submitted to our Chamber, it has been observed that when members who have operated for many years as sole proprietorships change their legal form under the provisions of the Turkish Commercial Code, becoming limited companies or other capital companies in order to institutionalize their commercial activities, the new registration in the trade registry causes their Chamber membership periods to start from zero, and that this gives rise to uncertainty regarding the right to vote and to stand for election in the Chamber's organ elections.
In practice, it is observed that differing approaches have emerged in calculating the membership period, considering that a change of legal form is a continuation of the existing activity, that the transformation largely takes place within the principle of continuity, and that the economic and legal continuity of the commercial enterprise is preserved.
The fact that members who, after operating for many years as sole proprietorships, change their legal form solely for the purpose of institutionalization are unable to vote or stand as candidates in elections for a certain period because of this transaction creates a perception of loss of rights in the field; our members voice the need for a regulation ensuring that their electoral rights are not interrupted because of a change of legal form.
In this context, it is our view that it would be useful for your Union to evaluate the principles for preserving the registry history and Chamber membership periods of members who continue their activities without interruption after a change of legal form, and to issue an explanation or regulation that provides guidance to chambers and commodity exchanges on the implementation of the legislation.
It has been requested that any opinion and guidance deemed appropriate on the matter be communicated to our Chamber.
