What is Prior Stock?
Incorporates, with the main agreement or by changing main agreement, some can have the right to have prior stock.
1- Privilege is the right to have prior stock provided in premium, liquidation share, priority, or right to vote.
2- More than half of the capital or with all the capital
2.1- State,
2.2- Special provincial administration,
2.3- Municipality and the other statuary bodies,
2.4- Unions,
2.5- Associations,
2.6- Foundations,
2.7- Cooperation’s’ or corporates’ participations in which they have the same share rates.
2.7.1- Except for the priorities attributed to their shares
2.7.2- For other shares and the other shareholders will not be given to priorities according to the related law.
***This provision cannot be executed on the corporates whose shares publicly traded and to the credit institutions and financial institutions defined in the law 5411 article number 3.
*** Turkish Trade Law Article 360 is reserved.
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Source:Turkish Trade Law
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