Legal aspect of employee involvement in the management of joint stock company

Employee involvement in the management of joint stock companies means the participation of employees by having a voice in the decision making mechanism of the company, whether directly or through their representatives, via various models and by using the rights granted to them. Recently, and especially in foreign jurisdictions, arguments in favor of employee involvement in the management of the companies have increased. The main reason behind this viewpoint is that employees, who may be deemed as the most prominent stakeholder in joint stock companies, contribute to the company with human capital and thus constitute as investors of the foregoing. The first section of this thesis lays down the models through which employees may participate in the management of the company and the rights granted to employees, by way of conducting a comparative legal analysis. The theoretical bases of employee involvement in management, and the relationship between the conflicts of interest in joint stock companies and employee involvement in management is elucidated in the second section. The third section presents the place of employee involvement in the effective management of the company. Finally, the last section puts forth the findings regarding employee involvement in the management of joint stock company under Turkish law.