Abstract:

In this study, how to determine the loss of capital in a joint stock company is examined. There may be many indications of the deterioration of the financial situation in a joint stock company. However, article 376/1 of the Turkish Commercial Code numbered 6102 will be applied if the last annual balance sheet shows that half of the total capital and legal reserves are no longer covered due to losses. TCC Art. 376/2 comes into play when two thirds of them are no longer covered due to losses. For this reason, firstly, the concepts of capital, legal reserves, loss and last annual balance sheet have been discussed. Then, according to the determination made here, the calculation of capital loss is examined. During this examination, the “Communiqué on the Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code No. 6102” published by the Ministry of Trade was also mentioned. In this context, it has been concluded that the capital loss regulation is a late signal for the recovery of a company whose financial situation has deteriorated. Therefore, in the last study, in terms of the legal requirements, a company whose financial situation deteriorates should establish an earlier warning system than the capital loss regulation.

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