Sole and foremost expectation of an entity (let it be real or legal entity) for being a shareholder to a company, is to earn profit. This expectation or “right” of a shareholder to earn profit is not an independent and unconditional right such as the right of a shareholder to vote. Therefore, the obligations and rights of these two parties (one being the company vs the shareholder) has to be further elaborated to be able to determine their exact framework. In this respect, Turkish Commercial Code (“TCC”) gives us an answer to address the questions of “what is profit” and “when is profit to be distributed”. Besides this elaborated legislation on the matter, there are still argumentative topics; such as the rights of minority shareholders who are not satisfied with the profit policy of the company.
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Rights of the Minority Shareholders in Case of Undistributed Dividend