The New Corporation in Turkey - 1

The corporation in Turkey is in a major breakthrough what has not been in sight for more than 50 years. The 1956 Code of Commerce is to be completely and practically abolished by 1^st July 2012. The New 2011 Commerce Law dictates the corporation to be extremely transparent and ready to stand firmly in a global stance.

The evolving globalization which I would relate with some developments in the 1970s and onwards hit the Turkish borders in the early 1980s. Aside by the bulldozing effects of the end of the gold standard that had shaped the world’s politics and the economic establishment for more than 40 years, chiefly with the deregulatory developments achieved in the US in the mid-1970s (i.e., abandonment of fixed brokerage commissions in 1974, the relaxation of credit conditions for a larger part of US population during this decade) provided a solid basis for the liberalization of the markets. The UK’s Big Bang in 1986 paved the way for a more efficient functioning of the City and making it the financial hub of the world following the New York’s lead. Finally the demise of the Iron Curtain seemed to be the major extent blow to the closed connections of some groupings of the countries over the world. This had been the time where freeing the markets forces seemed to be more than a need and mostly the inevitable.

Turkey started to position herself for the ride in the early 1980s. By the repealing of the regulations on foreign currency holdings of the general public and corporations with rather strict rules where incarceration was regular for the one caught with any amount of foreign denominated currency without government consent and/or legal cause, Turkey initiated an open economy policy which would spur import-export activities of the corporate Turkey. Many economists see this stage as a turning point at the initiation of Turkey’s integration with the international economies. Starting on the first day of 1996 the agreement for customs union with the European Union paved the way for corporate Turkey to be more competitive and quality and productivity oriented though many people see the prism over the vulnerability of the low quality product manufacturers to be harmed rather than to reap any benefits of the new order.

It is clearer nowadays that to the detriment of the struggle of the entrepreneurial Turk with his/her own endeavor through the advancement of the qualitative and productive capabilities of his/her manufactures or services, the legal framework for the company does not help him/her in such application. That is the point where the New Code of Commerce is highly expected to provide much more comfortable environment for the Turkish corporation to be a prominent member of the internationally competitive corporate club in the foreseeable future.

I personally am with this point.