What are the Fundamental Principles of Joint-Stock Company Law?

How to Establish a Company Within the Scope of Joint-Stock Company Law?

Joint-stock company law is regulated within the framework of certain principles. The primary principles are the capital and limited liability principle. In joint-stock companies, shareholders are liable only to the extent of their capital contribution. They are not personally liable for the company's debts with their personal assets. Another important principle is the legal entity principle. From the moment of its establishment, a joint-stock company has an independent legal entity and is considered a separate entity from its shareholders. The principle of share transferability ensures that joint-stock companies have a flexible capital structure. Shareholders can freely transfer their shares. For more information about Joint-Stock Company Law, you can visit the web address https://www.solmazlaw.com/project/ticaret-ve-sirketler-hukuku/.

How Does Auditing Work Within the Framework of Joint-Stock Company Law?

The establishment process of joint-stock companies is carried out within the framework of the rules set forth in the Turkish Commercial Code. For publicly traded companies adopting the registered capital system, this amount may be higher. To establish a company, the articles of association must first be prepared. This agreement must include basic information such as the company's title, purpose, capital structure, and the types of shares. The articles of association must be notarized and then formalized by registration in the trade registry. During the establishment process, an application must be made through MERSİS (Central Registry Record System), and the relevant documents must be submitted to the Trade Registry Directorate. Auditing mechanisms in joint-stock company law are established to ensure the healthy functioning of the company's financial and managerial processes. Auditing is divided into two types: independent auditing and internal auditing. Independent auditing is mandatory, especially for large-scale joint-stock companies. According to the Turkish Commercial Code, joint-stock companies meeting certain criteria are obliged to obtain auditing services from an independent auditing firm. In this audit, financial statements are examined, and reports on the company's financial situation are prepared. Internal auditing, on the other hand, is an auditing process carried out within the company itself.