Termination of partnerships in Turkey is an important field since partnerships may need to be terminated in the commerce and business world for different reasons. Partners seeking a clear way through this process must comprehend the legal roadmap for the termination of partnerships in Turkey. That is why, in this article, we gathered all the necessary information about the termination of partnerships in Turkey to provide you with a guideline on this topic.
The Principles of Partnership Termination in Turkey
Various legal principles and regulations govern the termination of partnership agreements in Turkey. Regarding the termination of partnerships in Turkey, the Turkish Commercial Code can be given as an example of a legal body. It governs various types of partnerships, including general, limited, and joint-stock companies. For instance, Article 636 of the Turkish Commercial Code addresses the dissolution and termination of partnerships in Turkey. Other significant principles of termination of partnerships in Turkey are leaving the partnership and exclusion from a partnership, which is explained in more detail below.
Leaving the Partnership
Termination of partnerships in Turkey is a legal process that requires following legal regulations and rules in this field. The first step of leaving the partnership is to check out the partnership agreement. This document often includes specific procedures and conditions for leaving the partnership. In addition, informing the other partner about the termination of the partnership agreement and filing the required documents with relevant government authorities, such as updating the Turkish Trade Registry or notifying other regulatory bodies, can be additional steps for leaving the partnership in Turkey.
Exclusion from Partnership
Termination of partnerships in Turkey, especially through the exclusion of a partner, is a complex process that includes legal procedures and the terms outlined in the partnership agreement. The method may change according to the specific type of the agreement but generally excludes a partner in a partnership that involves several steps, such as reviewing the partnership agreement, identifying the particular grounds for exclusion, filing required documents, and distributing assets.
Ending the Business Partnership Through Judicial Intervention
Legal intervention may be required if disputes between the business partners cannot be resolved smoothly. Management conflicts, infringements on the partnership agreement, or deadlocks are common problems that may necessitate judicial intervention.
When the reasons for dissolution are evaluated, and mediation does not help reach an out-of-court settlement, filing a lawsuit in the Turkish court can be a solution for the termination of partnerships in Turkey. The court will perform a detailed evaluation of the circumstances to decide if dissolution is required. Both business parties are legally obligated to comply with the decision of the court and the dissolution order.
If you end the business partnership through judicial intervention, you need a corporate and commercial lawyer in Turkey for a better and smooth legal process. As a Turkish law firm, we provide you a legal consultancy in this field at Istanbul Lawyer Firm.
Dissolution of the Partnership Agreement Via Arbitration
It is possible under Turkish law to terminate a partnership agreement through arbitration. By arbitration, parties can resolve their disputes outside of the traditional court system, which usually results in a shorter and more flexible procedure. In addition, arbitration to dissolve a partnership agreement is an efficient and successful procedure for resolving disputes and dissolving partnerships.
The parties involved must formally notify one another of the dispute and their intention to begin arbitration procedures when a dispute warrants the dissolution of the partnership. For arbitration, the parties typically submit evidence, arguments, and witnesses at hearings during arbitration processes to support their respective claims. Then, the arbitrators will make a binding decision after carefully weighing the information and defenses made during the hearings. The provisions for the dissolution of the partnership agreement may be included in this choice, along with any additional relevant details.
Mutual Agreement as a Means to Conclude the Partnership Contract
In Turkey, a partnership contract can be reached using mutual agreement. This agreement is the fundamental document describing the guidelines by which the partnership will function.
Identifying the people or entities who want to create the partnership is the first step in drafting a partnership contract. In addition, partners should collaborate to create a comprehensive, detailed, and legally sound partnership agreement that reflects all the agreed-upon deals. The partnership agreement should be signed once the parties have understood. After the partnership agreement is finalized, partners can start operating their businesses following its conditions.
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