We had previously announced that the Temporary Article 13 inserted into the Turkish Commercial Code set out restrictions on companies' distribution of their net profits, that exceptions to these restrictions were published, and that the term for the restrictions on the distribution of dividends was extended from 30 September 2020 to 31 December 2020.
As Temporary Article 13 limited the President's authority to extend the restrictions by only three months, a new extension after 31 December 2020 was not possible unless the said article was amended by the parliament. There has been no such amendment and therefore, the restrictions on companies' distribution of their profits have been lifted as of 1 January 2021. In other words, it is now possible for companies to distribute their previous year's profits and free reserves and to authorize their board of directors to distribute advance profits.
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