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One of the most noteworthy innovations in the new Turkish Code of Commerce,1 published in 2011, was the capital companies’ obligation to set up a website. It was aimed to institutionalize the companies, ensure that local and foreign investors have the right to get information about the company, and ensure transparency of corporate governance in view of meeting the requirements of harmonization of Turkish Law with European Union Law. Before the Code entered into force on the 1st July 2012, the legislator had shifted on the scope and sanctions of this obligation, especially in response to the reactions from small-scale capital companies. While all capital companies were initially obliged to set up a website, o the last amendments envisaged thatthis obligation applies only to capital companies which are subject to independent audit. The obligation of capital companies to set up a website is regulated in Article 1524 of the Turkish Code of Commerce, which prescribes that only the capital companies which are subject to independent audit are obliged to set up a company website. Companies must fulfill their obligations by opening a website within three months from the date of trade company registration, publishing a certain portion of the site and posting company announcements and notices, as prescribed by the law. In case a company fails to comply with these obligations, administrative and penal sanctions will be applied.

Capital companies' obligation to set up a website: An instrument for transparency and corporate governance in Turkish company law