The controlling company (parent company) and dependent company (subsidiary) are defined for the first time in the new TCC in detail. Accordingly, a company (controlling company) is assumed to control another company (dependent company) if the following criteria are met:
- If a company directly or indirectly (a) holds the majority of the voting rights of another company, or (b) has the right to ensure the election of members forming the majority which is able to take resolution in the management of another company in accordance with articles of association, or (c) has the majority of the voting right of another company alone or with other shareholders or partners based on a contract in addition to its own votes.
- If a company is able to hold another company under its control in accordance with a contract or through other means.
If the headquarters of at least one of these companies is in Turkey, the provisions related to the group of companies in the new TCC will be applied.
Companies (subsidiaries) that are directly or indirectly affiliated with the controlling company constitute a group of companies together with the controlling company (parent company).
The percentage of a company's participation in another company is determined by ratio of the total nominal value of the share or shares it holds in that company to the ratio of the capital of the company participated in.
