Creating pledge on stock of limited liability company

The Turkish Commercial Code Numbered 6102 (TCC) which became effective in 2012 brought important changes in the Turkish Commercial Law. Our Turkish Commercial Code Numbered 6102 particularly contains certain radical modifications and regulations concerning corporate law. One of the crucial modifications TCC introduced concerning the limited liability companies is the possibility of putting the pledge over a share of capital stock to the approval of the general assembly by a provision in the corporate charter. According to the art. 600/2 of TCC, it is possible to subject the formation of a pledge over a share of capital stock to the approval of the general assembly. In case of such a provision of the approval of the general assembly by the corporate charter, the rules concerning the transition would be applied. With this regulation, the lawmaker has put an end to the debates concerning whether the approval of the general assembly was necessary or not for the pledge over a capital stock share while the old TCC (OTTC) was in effect. Yet other debates concerning the pledge of a share of the capital stock of a limited liability company are still valid.