Bond in Turkish Corporate Law

Bonds are debentures that are amongst debt instruments within securities in capital market instruments in the Turkish capital market law and they are issued by the companies to obtain mid- and long-term funds. The word "bond" first brings government bonds to mind, however, government bonds that are defined in the Article 3 of the Law nr. 4749 is outside the scope of this dissertation. The type of bond that constitutes the subject of this dissertation is private sector bonds that is subject to capital market law. Therefore, the term "bond" will mean private sector bonds that are regulated by the capital market legislation and especially by the relevant communiques. Bonds are the most well-known type among debt instruments. Thanks to this debt instrument, companies can find fast and cheap loans and in exchange, investors gain periodic interest income and/or some other benefits depending on the type of the bond. Bonds bring advantages, disadvantages and risks for the issuer company and investors that should be mentioned. Bonds are instruments that are used both on national and international level offering an alternative funding method to companies where there is no right to participate in the management of the company unlike shareholding system and as such, they have an important place in the international world of finance. In our dissertation we will discuss the historical background of bonds, their place in Turkish and comparative law, their legal characteristics, their types, the rights and obligations of their parties involved, the legal transactions they are subject to and the regulations for the protection of bond investors.