In: Finance
2nd Topic- Management of corporation of Turkey
Opening a corporation in Turkey implies of set of steps and requirements to be fulfilled. Among the condition foreign investors must abide by is the appointment the directors or managers of the business, who will form the corporation management. The Commercial code in Turkey provides for the management of public and private companies through Articles 623 to 631. The Articles of Association of the company will also establish the responsibilities of Company managers in Turkey. It must be noted that requirements, roles and responsibilities of the management differs in private and public companies in Turkey.
Company registration agents in Turkey can offer information on the provisions of the commerce law related to company management.
Appointing company managers in Turkey
The company management of a Turkish Company is appointed during the general assembly of the shareholders. The directors or managers nominated must accept their functions in writing followed by their inscription in the Terkish companies Registrar.
The duties and powers of Company directors in Turkey
The first and most important duty of a Turkish Company's management is the fiduciary one,which refers to acting in the best interest of the shareholders and the company. The Company Act provides for the powers of directors in Turkey in Articles 371 and 623, as it follows:
- to amend the company's statutory documents;
- to appoint board members;
-to liquidate the company;
-to issue financial statements;
-to sell the company's assets;
- to determine the company's profits.
The company's management is required to carry out their duties with due diligence and act in good faith.
Who manages the corporate entity/entities and how
The board of directors is the highest level of execution authority to take decisions on all kind of works and operations pertaining to a corporation' s field of operation except those which are within the authority of the GA pursuant to the law and Articles of Association.
Source:www.companyformationturkey.com
1st topic- credit financing of fixed assets
First of all want to explain " what is credit financing'
An agreement between a buyer and a seller in which the buyer receives the good or service in advance and makes payment later, often over time and usually with Interest. For example, a buyer may purchase a computer on credit for $600 and pay$100 per month over several months with Interest.
Asset financing generally refers to loan availed by companies on the basis of the financial strength of the company.It is used for the growth and expansion of business to save on paying the full value of the asset outright. The asset's amount is divided into small regular payments along with Interest for the unpaid portion. The payment obligation and the ownership rights of the borrower change depending on the method of asset financing.
Types of asset financing
Hire purchase
Operating Lease
Finance Lease
Equipment Lease
Asset Refinance
Banks and other financial institutions act as lenders in asset financing. Asset financing is relatively safer for banks and other financial institutions than giving a conventional loan to the borrowers. If the borrower fails to repay the borrowed money, the lender can seize the asset and sell the same in the open market to recover the money.
The major concern for the financial institution is that when the asset is sold in the secondary market after their seizure; the risk of decline in the value of the asset always looms over their head. To overcome the risk; financial institutions finance the asset considering that the contingent claim is going to arise on the asset and accordingly they frame the lending terms. The major benefit to financial institutions is, they get regular interest on the lent amount and also they have right to seize the asset in case of non- payment of principal or Interest by the borrower.