New Rules to Enhance Corporate Governance
On 28 March 2017, Ministerial Decree no. 33 of 2017 was issued to add a new chapter
to the Executive Regulations of the Capital Market Law no. 95 of 1992. The new chapter
is number 13 and it sets rules of identifying the beneficiary in stock market
transactions. The rules aim at enhancing transparency and disclosure and supporting
the supervisory role of the regulatory authority.
The beneficiary is defined under the Decree as the person who gets benefit from the
transaction (or the person to whom the transaction was performed), whether directly
or indirectly. The Decree adds a new annex under no. 7 listing the disclosure
requirements in relation to these persons.
Companies are required to abide by the disclosure requirements under the new rules
in case of issuing new shares in a joint stock company or a company limited by shares,
amending its shareholders structure, applying for a mandatory or a voluntary tender offer, IPOs, listing in a stock exchange, or in case of establishing or trading in a
company operating in securities.