Usufruct Right on Registered Shares in Joint Stock Companies

I. Introduction

The right of usufruct is a real right granting its holder full power to benefit from the subject of the right. This right can be established over movables, immovables, or other rights or assets. It follows naturally that a usufruct right can be established on the company share as well. Establishing the usufruct right on company shares are regulated under Turkish Commercial Code (Law No. 6102) (“TCC”). While there are several reasons for granting a usufruct right over company shares, one commonly encountered scenario is the shareholder granting the usufruct rights to its creditors for its debts.

Establishing a usufruct right on a company share varies according to the type of com