If a company (parent company) directly or indirectly owns an amount of shares representing five, ten, twenty, twenty five, thirty three, fifty, sixty seven or one hundred percent of the capital of a capital stock company (subsidiary) or if its shares fall under these percentages, the parent company must notify the subsidiary and the related authorized bodies within ten days subsequent to the completion of the aforementioned transactions. Such acquisitions or dispositions of the shares must be declared under a separate heading in the annual and audit reports and announced on the subsidiary's website.
The managing directors and board members of the parent company and the subsidiary must make a notification in relation to the shares in that subsidiary owned by themselves, their spouses, their children under their custody and a company in which they hold at least twenty percent of its capital. Notifications must be in writing, registered at the trade registry and announced.
If such notification, registration, and announcement liabilities are not fulfilled properly, all rights including the voting right regarding to the relevant shares may be suspended.
The controlling agreement must be registered and announced at the trade registry. Otherwise, the control agreement will not be valid. The invalidity of the agreement does not prevent the application of the new TCC and other laws regarding the liabilities and responsibilities for the group of companies.
