The prohibition of competition for the members of board of directors in joint stock companies

The subject of this study is the prohibition of competition for the members of board of directors in joint stock companies. The prohibition of competition for the members of board of directors in joint stock companies is regulated under article 396 of Turkish Commercial Code. This study consists of three main sections. In the first section; the concepts of prohibition of competition and competition were handled. Furthermore, in this section the differences of prohibition of competition from other similar terms, the purpose of regulations about prohibition of competition and its characteristics were described. Finally, the other regulations about prohibition of competition that in Turkish legislation were mentioned. In the second section of the study, the scope of the prohibition of competition for the members of board of directors in join stock companies was explained. In the final section, to remove prohibition of competition with approval of general assembly was discoursed. Moreover in this section, the sanctions that may be applied in case of violating of the prohibition of competition and the procedure of implementation of this sanctions were examined.