Capital advance

This study focuses on the concept of "capital advance" which is not regulated under private law aside from tax regulations and regulations of administrative bodies and originates from customary practice. Advance capital refers to a shareholders' loan given to the company, which has a special performance mechanism that allows the loan to be settled by repaying to the creditor or converting it into shares of the company. In this study, the elements and the performance mechanism of this concept, the rights and obligations of the parties, and the relationship of this concept with other applicable rules of law are analyzed and evaluated.