Ensuring the balance of benefit of the participants in conditional capital increase

Conditional capital increase is an innovation that entered our law with the Turkish Commercial Code No. 6102. In conditional capital increase, which is one of the capital increase methods, the capital increase depends on the behavior of third parties. Conditional capital increase, which is subject to certain limitations, has its own characteristics. Capital increases gradually over time with the use of the rights of the holders of the conversion and option rights. Conditional capital increase is a method that provides flexibility and speed in meeting the capital need. The holders of the conversion and option rights have the opportunity to use their rights whenever they want. In conditional capital increase, the pre-emptive right of the shareholders must be removed. In order to eliminate the risk of damage to the rights of the shareholders who do not have the pre-emptive right with the capital increase, the right to be the object of recommendation has been granted. There are also regulations in our law to secure the rights of the holders of the conversion and option rights.