Subscription right in the company

Subscription right has been regulated by the Turkish Commercial Code numbered 6102. Subscription right gives the shareholder the right to receive new shares, which will emerge as a result of the increase of capital. With the subscription right, which provides both financial and personal rights, shareholders are prevented from suffering losses by preventing the sale of new shares to third parties as a result of the capital increase. Although the subscription right, in principle, is granted to shareholders, it can also be granted to other people by the articles of partnership or the decision of the general assembly. Subscription right, which does not provide an acquired right, may be limited or abrogated by the general assembly in joint stock companies that accept the basic capital system and board of management that accept the registered capital system. In order to restrict the subscription right, there must be a fair cause, as well as other conditions in the law. Keywords: Subscription right, limitation or abrogation, fair cause, acquired right, financial right, personal right, basic capital system, registered capital system