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Liabilities of Shareholders and Board members for Public Receivables in Turkey 





In Turkey, the liability of Joint Stock and Limited Liability Companies’ shareholders is only against the company and limited with their capital contribution. However, the shareholders of Limited Liability Companies are, unlike Joint Stock Companies, jointly and severally liable against public receivables (fiscal receivables) such as taxes, duties, levies and charges if the company is unable to make the required payments.


In addition, “the legal representatives” of Limited Liability and Joint Stock Companies are personally liable for any unpaid tax and other public liability that cannot be collected from the entity.


Board members in Joint Stock Companies will not be personally liable for any unpaid taxes and other fiscal liabilities where a director(s) is appointed as a fully authorized board member to represent the company or a manager(s) is appointed to represent the company. Otherwise, the board members, as the representative of the company, would be personally liable for any unpaid taxes and other fiscal liabilities. 





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