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Subsidiaries Banned for Parent Company Ownership

Approval of “Corporate Governance” instruction was one of the most important measures taken by the SEO to protect investors’ rights, especially minority shareholders.

Approval of “Corporate Governance” instruction was one of the most important measures taken by the SEO to protect investors’ rights, especially minority shareholders. 

Special concepts such as independent board members, independence conditions, protecting investors’ rights and the equal treatment thereto, observing the rights of other beneficiaries, motivating beneficiaries, BOD’s disclosure, transparency and responsibility have been set in this instruction. Implementing these instructions would provide a brilliant opportunity to enhance efficiency and absorb investors to the capital market.

Cross ownership of companies is a big concern for a proper corporate governance, which may negatively affect the market through leaking the supervisory issues. Following the international experience and ownership restrictions in many advanced countries, these restrictions may be imposed on all companies; whether listed or non-listed.