There is a significant regulation with regard to the companies in Turkey and their shareholders in Turkey and abroad which has been promulgated in the Official Gazette dated August 28, 2012, numbered 28396, which indicate ”Regulation pertaining to the General Assembly of Joint Stock Companies to be held via Electronic Means (EGKS) ”.
Electronical General Assembly System has became fundamental positions for companies since they can participate in meeting by electronic which provide not merely in person but also through their representatives can join the meeting. This application focuses on the importance of the information system and technology sector.
This application provides advantages for international trade and encourages enterpriser to invest in Turkey because they can monitor the physically hold meeting online through Internet access and send their views, suggestions or questions in conferences simultaneously. Therefore, it is easy to pass general assembly resolutions although shareholders who are not able to attend the meeting. Moreover, this application impacts voting process as shareholders can vote simultaneously or can receive information, yet all of them reflect the structure of the meeting with regards to adverse or positive because there is an instantly process.
Why is E-GKS essential?
It is certain that shareholders may not have time to attend a shareholders’ meeting. They may go abroad so as to attend the meeting, but they have no enough time and do not want to lose a lot of time. In such cases, normal voting system may arise problems. Due to the fact that e-GKS becomes part of an effort in order to make an agreement from abroad with ease.
This system is the first Turkish electronic certification provider and also first electronic mobile provider. As a result of this, there is an important item for reliable in the information system which assists to have secure electronic signatures. In addition to this, ones who desire to attend the meeting via electronic means should arrange their time and shareholders or companies preserve their time and it is no required to go abroad for assembly. This conditions impact the rate of commerce because it is ease to make an agreement through this system in terms of confidentiality and information exchange.
Regulation of E-GKS System: Legal and Financial Aspects
The regulation implicates the procedures and principles of voting by the beneficial owner or his/her proxy holders. In conformity with Article 1527 of the Turkish Commercial Code, there is an attend general assembly meetings by electronic which the company shall constitute the electronic meeting system by itself and this regulation assist shareholders or companies to make proposals and express opinions, also vote by electronic system. Accordingly, giving votes will be kept by MKK (Merkezi Kayıt Kuruluşu). As mentioned above, this system will contributes to vote and also it is possible to assign a proxy. Moreover, this system makes room for digital signature and contributes to regulation which the electronic signature defined in Article 4 of the Electronic Signature Law No: 5070.
E-GKS System which is one of the first E-GKS systems in the world is an obligation for joint stock companies which are listed in Istanbul Stock Exchange. There is no obligation for other companies to participate in the E-GKS system. In particular, information technology system generates new innovations. Since these applications are essential for many companies, shareholders, representatives and investment companies. Thanks to E-GKS, companies have a right to sign off on agreements and this system ensures companies to have reliability, transparency of companies. As a result of this, companies will be able to make a decision with quickly in the general meeting and this opportunity contributes to commercial sectors in order to expedite in the world. Hence, there is an international connection for shareholders or representatives who do business from a distance. Under these circumstances, companies will operate faster decision making which affect economy in the positive way.