Union of Chambers and Commodity Exchanges of Turkey

It has become apparent as a result of the survey that in this time of global risk, currency and commodity increase and unforeseeable fluctuations, 88% of Turkish companies are unprepared to deal with possible risks. 12% of companies state that they have established teams to detect altercations which could endanger the development and continuation of the company and take precautions accordingly as well as conducting risk management. 70% of companies state that they have websites and have established informatics infrastructure security.

85% of companies are not prepared for the new Turkish Commercial Law which will change the structure and operation of companies, planned to go into effect in July 2012.

- Survey conducted with a thousand companies

The survey conducted by The Union of Chambers and Commodity Exchanges of Turkey (TOBB) with the international consultation company Deloitte regarding the readiness of Turkish companies for the new Turkish Commercial Law has presented striking results. The “TTKMetre” survey on the TOBB website has been taken by almost a thousand companies in 51 provinces. 80% of companies taking the survey have answered all questions.

Stating that the survey puts forth striking results regarding the new Turkish Commercial Law, planned the revamp the infrastructure of companies, TOBB President Rifat Hisarcıklıoğlu said, “As TOBB, we have provided training to over 4000 companies with Deloitte in order to facilitate the adaptation to the new Turkish Commercial Law. Our free seminars are still ongoing. On Monday, we will be providing training to the companies affiliated with the Trabzon Chamber of Commerce and Industry. The results show us that companies are only at the beginning of the road for adapting to the new Commercial Law. Even though we have objections on several points of the new Turkish Commercial Law, we believe it to be important for the future of our companies. In the coming period everyone, including the public administration, should hasten their preparations.”

Deloitte Turkey Board Member and partner M. Sait Gözüm said, “It is evident that big companies give due attention to the new Turkish Commercial Law. On the other hand SMEs are anticipating that the Law will be postponed. This slows down the work of companies.”

- Companies average 4.38 points

Survey results show that companies are only just beginning to adapt to the new Turkish Commercial Law which aims to change the way companies conduct business, the structure of corporate governance and bring about transparency and international standards. While 14.8% reached a passing grade, 85.2% are unprepared for the new law. The companies average 4.38 points with the passing grade being 7 on a scale of 10.

Joint-stock companies are more active regarding the new Turkish Commercial Law adaptation in comparison to incorporated companies. It is observed that companies with over 250 employees are well above average in terms of preparation while companies with fewer than 10 employees are around 3 points. The larger companies in terms of employees and endorsements are averaging around 6 points.

- We are “insensitive” to risks and interested in technology

The new Turkish Commercial Law makes it mandatory that every stock company operates a website, publishes the minimum particulars as stated by law on it and back up electronic files. Survey results show that out of all criteria, this is the one that companies in general are best prepared for. 70% of companies state that they have websites and have established informatics infrastructure security.

It is observed that companies which pursue technology are slower to track and take precautions against economic and other risks. 88% of companies have not taken any precautions against economic risks. 12% of companies state that they have established teams to detect altercations which could endanger the development and continuation of the company and take precautions accordingly as well as conducting risk management.

25% of companies have established an in-house audit mechanism.

The in-house audit mechanism is found to be active mainly in large scale companies.

- Kocaeli and İzmir are the best prepared provinces

Survey results show that chemistry/plastics/paper and food industries are best prepared in the companies located in İzmir and Kocaeli for the new Turkish Commercial Law.

The new Turkish Commercial Law makes it mandatory for commercial ledgers, whether it is for individual or consolidated financial tables, to be kept in accordance to the Turkey Accounting Standards. While 64% of the companies participating in the survey report readiness for this, 29% report that they are familiar with the Uniform Financial Reporting Standards (UFRS). Only 15% of the companies are allocating or are planning to allocate resources for adapting to the new system.

Albeit decreasing, debts to firms are continuing.

The new Turkish Commercial Law removes the widely used “partners’ current account” and prohibits becoming indebted to the company for corporate and limited liability partnerships. 50% of company officials who took part in the survey state that they are aware that the company’s Articles of Association need to be made compatible with the new law, 40% state that partners and relatives continue to enter into debt with the companies. 20% of companies report payments to administrators as pay/attendance/bonus/dividend in their Articles of Association or board information while 15% have a general assembly directive and 35% have organizational regulations. 55% of companies compile annual reports, 35% have begun preparations to select an independent auditor by March 1st, 2013.
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