Proceedings of the Law & Political Science Conference, Vienna

A LEGAL EFFECT OF EUROPEAN UNION'S BUSINESS LAW POLICY: SINGLE MEMBER COMPANIES IN TURKISH LAW

SALIH TAYFUN İNCE

Abstract:

The concept of single-member company has been studied in the doctrine by lawyers and economists for more than hundred years. Single-member companies have become widespread by virtue of the European Union’s legal instructions and mostly subsequent acceleration of states’ legislation efforts in order to allow foundation of single-member companies pursuant to their national laws. The dangers which single-member companies may generate are matters of discussion as well as the possible benefits of single-member companies to the national and international markets. Authorization of a single-member company foundation is one of the most important changes that were brought by Turkish Commercial Code with its entry into force in 1 July 2012. It is understandable from analysis of company foundation statistics provided by official authorities that incorporation of a company by a single member is widely embraced by market players. Presently, the European Union labours with a directive proposal which aims formation of new and more practical single-member company type. The outcome of these economic policy borne legal efforts will have significant effects on Turkey as a current member of the European Customs Union and a candidate country for the European Union, and foreign investors who plan to invest in Turkey.

Keywords: Single-member Company, One-man Company, Limited Liability Company, Joint Stock Company, Turkish Business Law, European Union Business Law, Commercial Law, Company Law.

DOI: 10.20472/LPC.2017.001.003

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