We are an independent law firm that conflates expertise and experience in all legal fields. we provide services for the legal needs of everyone from private persons to mid-tier and large-scale companies and from public institutions to international and global holdings.

Contact With Us

Esentepe Mh. Kasap Sk. No: 12 Kat: 4-5 Sisli, ISTANBUL

Monday-Friday (09:00 - 18:00)

Follow Us

For detailed information about all fields we work in

Additional Payment Obligation Of Partners In Limited Companies

Publications

I.INTRODUCTION

Although additional payment is an obligation that is imposed and the principal capital debt, which is the primary debt of the partners of a limited partnership, can only be stipulated depending on the principal capital share and only through the articles of partnership. (TCC Article 603/1, Article 577/1-c). The purpose of this regulation is to enable partners who are under obligation, to support a partnership that is in a financial predicament and is under a balance deficit with additional payments.

II.THE TERMS OF THE ADDITIONAL PAYMENT OBLIGATION

A.The Necessıty To Be Included In The Artıcles Of Incorporatıon 

As stated explicitly under Articles 603/1 and 577/1-c of TCC, the obligation for additional payments can only be imposed via the articles of incorporation. The regulation regarding this matter is mandatory. In other words, additional payment obligations cannot be imposed on the shareholders solely through the decisions of the general assembly and/or the director(s). Such general assembly or manager decisions are deemed to be void.

B.The Amount Of The Additional Payment Obligation 

The additional payment obligation imposed through the articles of partnership can only be requested by the director and/or board of directors if the conditions stated under Law Numbered 6102 are met. The amount of obligation can be determined as a fixed amount stipulated in the articles of limited partnership (for example, 20,000 TRY) or the principal capital share (such as twenty percent of the principal capital share). However, this amount cannot exceed twice the principal capital share’s nominal value.

C.The Circumstances In Which The Additional Payment Obligation Can Be Requested  

There are three paragraphs under the relevant law which list the circumstances in which the additional payment obligation can be requested. However, it should be noted that the partners cannot be requested to fulfill their additional payment obligations unless there is a financial compulsion, even if there is a provision within the partnership articles. The annual or interim balance sheet data of the partnership can be taken as the basis for determining whether there is a financial compulsion or not.

According to TCC Article 603/1:

1.       If the combined total of the company’s principal capital and legal reserves cannot meet the losses of the company,

2.       If the company cannot continue its business activities properly without these additional tools,

3.       If another situation defined in the articles of partnership has emerged, that causes a need for equity,

Then an additional payment obligation may be requested by the directors and only by the directors.

III.THE PROCEDURE REGARDING THE ADDITIONAL PAYMENT REQUESTS

When the directors request the additional payment obligation’s fulfillment, they must provide the relevant partners appropriately. Requesting in writing will be more suitable with the principles of legal security and transparency. Likewise, it would be appropriate for this request to include the circumstances for which additional payment obligations are prescribed, the amount of the additional payment imposed on the obliged partner, and the sanctions determined in the articles of partnership regarding failures to fulfill the additional payment. The directors will request the fulfillment of the additional payment obligation from the related partners by acting per the equal treatment principle per Article 627 of the TCC.

Additional payments are only requested from the obliged partners. When an obliged partner departs from the partnership, the liability passes to the party who has assumed their shares. However, if the limited partnership has gone bankrupt within two years from the date on which the partner’s departure is registered, and their successor has not fulfilled this obligation, a request can also be made to the departed partner.

According to Article 147/4 of the TCO, in a partnership, any claims arising from the articles of partnership that is between the partners themselves or between the partnership and the partners or any claims arising between the directors, representatives, and superintendents of a partnership and the partnership itself are subject to a 5 year limitation period. Accordingly, since this additional payment obligation is a liability between the partnership itself and a partner and since it can be stipulated in the articles of partnership, it must also be made a subject of legal proceedings or lawsuits in the five years following the request of the director.

IV.THE PROVISIONS AND CONSEQUENCES OF FAILURE TO FULFILL THE ADDITIONAL PAYMENT OBLIGATION 

1.Filing a Performance Action Against Obliged Partner

There is no explicit provision in the TCC (Law Numbered 6102) regarding the sanctions to be applied in case of a failure to fulfill the additional payment obligation. However, in Article 577/1 of the TCC, additional payment obligation is considered among the binding provisions, provided that it is included in the articles of association. According to Article 577/1-f of TCC, the provisions of contractual penalty can be applied in the event of total non-fulfillment or belated fulfillment of the obligations stipulated in the law, or the articles of incorporation are also included in this scope. 

2.Rightful Dismissal from Partnership

Failure to fulfill the additional payment obligation may also act as a rightful cause for the relevant partner’s dismissal. Dismissal from the partnership may result from an existing legal provision or regulations included within the partnership articles. The parties can include provisions regarding dismissal in the articles of partnership.

3.Rightful Departure for Other Partners

In cases where the additional payment obligation, which is a vital tool in terms of the continuity of the commercial activities of the partnership, also plays an essential role in increasing the credibility of the partnership, the failure to fulfill this obligation or its elimination can be considered as a rightful cause for another partner to leave the partnership in question.

4.Rightful Termination of Partnership

 

Since additional payments are also significant financial opportunities that increase the partnership’s commercial credibility, failure to fulfill this obligation can be considered a reason for the partnership’s rightful termination. Likewise, since the amount of the additional payment is determined based on the shareholder’s shares in the principal capital share, the departure or dismissal of a partner whose additional payment obligation is significant may especially be why the remaining partners terminate the partnership rightfully.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Yayımlar

Bize Danışın

    I read, agree and accept the notice on personal data protection, declaration of explicit consent, privacy and cookie policy.

    Covid-19

    Litigation & Dispute Resolution

    We mediate on legal disputes and represent our clients before…

    Real Estate

    We offer legal services aimed at the problems experienced by…

    Mergers & Acquisitions

    We provide legal consulting devoted to merger and acquisition processes…

    Intellectual Property

    We offer legal services in all intellectual property fields such…

    Employment & Labor

    We proffer legal consultancy services intended for struggling with matters…

    Debt Collection & Restructuring

    We advocate the interests of our clients who are parties…

    Insurance Law

    We provide legal consultancy services aimed at affairs between our…

    Business Law & Corporate Maintenance

    We offer consultancy services pertaining to corporate law to our…

    Protection Of Personal Data

    We provide legal services to our clients in line with…

    Transportation & Logistics

    We provide legal consultancy and litigation services in the areas…

    Consumer Protection

    We offer legal consultancy on the aggrievements of consumers such…

    Family And Inheritance Law

    We provide legal services regarding matters such as divorcement, alimony,…