A communiqué issued by the Undersecretariat of Treasury has amended some sections of the previous communiqué on foreign investment. The main points are as follows:
- In a company with foreign investment, transferof shares between foreign shareholders and shareholders resident in Turkey are subject to the prior approval of the Undersecretariat. The sale price of such shares can be determined by the parties, but the Undersecretariat can bring in an independent expert to verify that the price is appropriate before giving permission. Transfers between foreign shareholders do not require permission, but the Undersecretariat must be notified of the transfer within one month.
- Foreign shareholders can effect advance payments for future increases of capital. However, in the event that an increase has not been realized in one year and/or the payment has been returned to the foreign shareholder, such payment will be considered a loan.
- Persons resident abroad may freely buy and sell shares quoted in stock exchanges. Transactions in unquoted shares are subject to the approval of the Undersecretariat; but shares bought by investment companies, mutual funds and companies engaged in portfolio investments with the purpose of holding them for a period exceeding two years are not subject to approval, provided the Undersecretariat is notified within one month.
- Companies with limited liability (Limited Sirket) can become involved in 'Build-Operate-Transfer' projects. Previously only joint stock companies were permitted to participate in such operations.