Article 367 of Turkish Commercial Code showing the necessary steps for companies who go into debt due to capital loss is as follows.
3. Capital loss, going into debt
a) Obligations of appeal and notification
Article 376- If it is understood that half of total of legal reserves and capital in the last yearly balance are unreturned because of damage, the board of directors call a meeting of the general assembly and presents them the remedial measures that they find suitable.
(2) According to the balance of last 2 years, if it is understood that two thirds of the total of legal reserves and capital are unreturned because of damage, the company ends by itself unless the general assembly which is called for a meeting immediately decides to make do with one third of the capital or the completion of the capital.
(3) If there are signs showing that the company has göne into debt, the board of directors makes up an interim balance sheet of assets both on the basis of going concern concept and the possible sale prices.
If it is understood from this balance sheet that the actives are not enough to meet the receivables of company’s suppliers, the board of directors notifies the Commercial Court of First Instance located near the company’s headqusters and declares bankruptcy.
Unless it is decided on written form by suppliers of company debts in the amount that may close company’s deficit and recover it from being deep in debt, to be placed after all the suppliers on the list, and the legitimacy, authenticity and validity of this statement or agreement is confirmed by experts assigned by court to which the board of directors will declare bankruptcy, before the decree of bankruptcy. Otherwise, the application to the court for expert review is as declaration of bankruptcy. [*]
Source: Turkish Commercial Code – Article 376
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