a)
Capital increase
In the merger through acquisition, the transferee company must increase the capital to a level adequate to protect the rights of the partners of the transferred company.
b) Formation of a new company
In the merger through forming a new company, relevant provisions of the new TCC and Cooperatives Law are applied in order to form the new company with the exception of provisions pertaining to contribution of capital in kind and the minimum number of partners.
c) Interim balance sheet
Companies participating in the merger are obliged to prepare an interim balance sheet if:
- The period between the date the merger agreement is signed and the date of the balance sheet is longer than 6 months or,
- There are significant changes in the assets of the companies participating in the merger after the last balance sheet was prepared.
The interim balance sheet is prepared based on the principles and provisions applied to the annual balance sheet with the exception of the following matters:
- There is no requirement to conduct physical stock take.
- The valuations applied in the preparation of the last balance sheet are changed to the extent of the transactions in the commercial books. Depreciation, valuation adjustments, provisions are also taken into account in the preparation of the interim balance sheet.
