Statute

STATUTE OF THE COSMETICS AND CLEANING PRODUCTS INDUSTRY ASSOCIATION

Name and Location

Article 1- Name of the association shall be "COSMETICS AND CLEANING PRODUCTS INDUSTRY ASSOCIATION".

The principal office of the association shall be in Istanbul with no branch office.

Association's Objectives and the Work Subjects and Methods to be Sustained by the Association to Achieve The Objectives and the Fields of Activity

Article 2-The Association has been founded to develop the COSMETICS AND CLEANING PRODUCTS INDUSTRIES, including cosmetics, detergents, personal care and hygienic paper products and to contribute to the solution of problems, to be beneficial for the environment and human health. Special attention will be paid for conducting the necessary activities for realization of the objectives within the frame of the principles of free competition, in a way to prevent unfair competition. In order to meet the necessities which may emerge in line with the developments and needs, the association may conduct activities in the fields of other packaged consumption products.

Working Subjects to be Sustained by the Association and the Methods

1-Conducting research for effectiveness and development of the activities,

2-Conducting training activities such as courses, seminars, conferences and panel discussions,

3-Obtaining all kinds of information, documents and publications that are necessary for the realization of the objectives, preparing publications such as newspapers, magazines and books to be distributed to its members as well as conducting works and creating a website and publishing informative bulletins to communicate its endeavors in line with its objectives,

4- Supplying all kinds of technical tools and instruments, office equipment and stationery for the realization of the objectives,

5-Conducting charity activities provided that the necessary permissions are received and accepting donations, project funds (i.e. EU funds) from within the country and abroad,

6-Establishing and operating economical, commercial and industrial businesses to obtain the income needed for realization of the association's objectives

7-Establishing a club house to be used by the members in their leisure times, founding and furnishing social and cultural facilities,

8-Organizing parties, concerts, balls, theatres, exhibitions, sports activities, trips and entertainment activities, etc. to develop and sustain the human relations between the members or to allow the members to benefit from these types of activities,

9-Purchasing, selling, renting, hiring goods and property assets needed for the activities of the association and assigning real rights on property,

10-Establishing a foundation or federation or joining an already founded federation if necessary for the realization of the objectives, establishing the facilities that associations can only establish by obtaining the necessary permissions,

11-Conducting international activities, becoming members of foreign associations or institutions and carrying out project-based mutual activities and cooperation,

12-Without prejudice to the provisions of the Law on Relations of Associations or Trusts with Public Institutions and Corporations, carrying out mutual projects with public institutions and corporations, universities, research institutions, accredited laboratories about subjects which are related to their field of work, if necessary for realization of the objectives,

13-Establishing agencies wherever necessary to conduct the association's activities,

14-Participating in or forming platforms for realization of a common goal with other associations or trusts, unions, chambers, industrial platforms and assemblies and similar non-governmental organizations in the fields which have not been prohibited by the law and related to the objectives of the association.

Field of Activity of the Association

1. To state and discuss the problems of the industry sector before official and private institutions, offices and authorities and to find solutions to these problems,

1. To contribute to the preparation of legislation related to the industry sector and to cooperate with the related offices, to support harmonization with the relevant legislation of the EU,

1. To increase the competitive power of the sector, to wage war on fake products, to contribute to the adaptation of international quality standards by member companies, to contribute to the solution of environmental problems,

1. To take the necessary precautions to protect competition in the industry sector and the consumers,

1. To contribute to the legislative training of the SME's, to pioneer and facilitate the necessary studies for a just and effective market inspection and surveillance with the related institutions and corporations

and to conduct activities in similar fields.

Membership and its Procedure

Article 3- Every real person and legal entity who has legal capacity, adopts the objectives and principles of the association, accepts to work in this respect, acts in the industry sector covered by the fields of activity of the association and bears the conditions foreseen by the legislation shall be eligible for membership. However, foreign real persons should have the right of residence in Turkey to be eligible for membership. This condition is not required for honorary membership.

Application for membership to be made as a written application to the Association presidency shall either be approved or rejected by the Board of Directors of the Association within thirty days and the applicant shall be notified of the outcome in writing. The membership application shall be examined in line with the criteria determined and detailed by the Board of Directors, and a decision will be made following mutual interviews, including a visit to the company. The name of the applicant who is accepted to membership shall be registered in the book being kept for this purpose.

Full members of the association consist of the founders of the association and Real and Legal Persons whose applications have been accepted by the Board of Directors. Those who have provided important material and moral support for the association may be accepted as honorary members on a decision of the Board of Directors.

If companies active in this sector request membership for their shareholders, managers or employees on behalf of themselves, the said person can be entitled to membership based on the company's request letter and application of the subject person. Upon notification to the association fact that such person no longer has a business relationship with the said company, his membership is canceled and the person who is notified to the association as replacing him shall be registered as new member. All dues of members who are company shareholders, managers or employees can be paid by the companies.

Termination of Membership upon Member's request

Article 4- Each and every member shall be entitled the right to resign from membership provided that they notify their resignation in writing.

The resignation procedure shall be deemed complete upon receipt of the resignation letter of the member by the Board of Directors. Withdrawal from membership shall not end the accumulated unpaid subscription dues commitment to the association. Upon notification of the end of the business relationship of those people who have been accepted for membership as company shareholders, managers or employees of the related company, termination of their membership shall be decided by the Board of Directors.

Termination of Membership by the Association

Article 5-Circumstances requiring removal from membership of the association.

1- Acting contrary to the statute of the Association,

2- Continuously avoiding the assigned tasks,

3- Failure to pay the membership dues within the same calendar year despite written notifications,

4- Disobedience to the decisions of the Association's bodies,

5- Losing the conditions necessary to be a member.

In case of determination of the existence of one of the above circumstances, members shall be removed from membership by the decision of the Board of Directors.

Those removed or expelled from the association shall be deleted from the member registry book and they cannot have any legal claim on the assets of the Association.

Bodies of the Association

Article 6-Bodies of the Association have been listed below:

1-General Assembly,

2-Board of Directors,

3-Supervisory Board.

Formation of the General Assembly of the Association, Meeting Time and Call and the Meeting Procedure

Article 7-The General Assembly is the most authoritative decision making body of the association and is formed of the registered members of the association.

General Assembly shall make the following meetings;

1- Ordinary meeting at the time indicated in the statute,

2- Extraordinary meeting in case the Board of Directors or the Supervisory Board shall deem it necessary or upon request of one fifth of the members of the association, within thirty days.

Ordinary meeting shall be made every two years in March, at the date, time and place determined by the Board of Directors.

General Assembly shall be summoned for meeting by the Board of Directors.

If the Board of Directors fails to summon the General Assembly for meeting; upon application of one of the members, the magistrate shall assign three members to summon the General Assembly for meeting.

Method of Invitation

Board of Directors shall prepare the list of members who have the right to attend the General Assembly in accordance with the association's statute. Members who have the right to attend the General Assembly shall be summoned for the meeting at least fifteen days in advance, by announcing the day, time and place as well as the agenda of the meeting, at a newspaper or with a written notice or via e-mail. If the meeting cannot be convened because a quorum is not achieved; the day, time and place of the second meeting shall also be stated in this notice. The period between the first and second meetings shall not be less than seven days and not more than sixty days.

If the meeting is postponed for a reason other than failure to achieve a quorum, this situation together with the reasons for the postponement, shall be announced to the members in line with the method of notice carried out for the first meeting. It is compulsory that the second meeting is made within and not later than six months of the date of postponement. Members shall be called for the second meeting in line with the principles stated in the first paragraph.

General Assembly meeting cannot be postponed for more than once.

Method of Meeting

General Assembly shall ordinarily meet with a simple majority of the members who have the right to attend and the presence of more than two thirds of the members are required in the case of an amendment of statute or the dissolution of the association; in case of postponement of the meeting due to lack of quorum, quorum is not sought in the second meeting. However, the number of members attending this meeting shall not be less than twice the number of members of the Board of Directors and the Supervisory Boards.

A list of the members who have the right to attend the General Assembly shall be kept ready at the meeting place. Identification cards of the members, issued by formal authorities, shall be controlled by officials authorized by the members of the Board of Directors or the members of the Board of Directors itself. Members shall enter the meeting place by putting their signatures next to their names on the list mentioned above.

If the quorum is met, the situation shall be established with a signed record and the meeting shall be opened by the Chairman of the Board of Directors or a member of the Board of Directors authorized by the Chairman of the Board of Directors. In case of failure to meet the quorum, a report shall be prepared by the Board of Directors.

After the opening, a council committee shall be formed to manage the meeting by electing a president and a sufficient number of vice presidents and a secretary.

When voting for election of the official bodies of the association, voters must show their identification cards to the council committee and put their signature next to their names on the list.

Chairman of the council committee is responsible for the management and security of the meeting.

Only the agenda items are discussed in the General Assembly. However, it is compulsory to add those items to the agenda which have been requested in writing by one tenth of the members attending the meeting.

Each member has the right to one vote in the General Assembly; each member must personally use his vote. Honorary members can attend the General Assemblies yet they cannot vote. In case of membership of a legal entity, Chairman of the Board of Directors of the legal entity or its representative shall vote.

The items discussed and decisions taken in the meeting shall be written down as a report and signed by the Chairman of the council committee and the secretaries. At the end of the meeting, the report and other documents shall be submitted to the Chairman of the Board of Directors. Chairman of the Board of Directors is responsible for protection of these documents and submission of the same to the newly elected Board of Directors within seven days.

Methods and Ways of Voting and Decision Making of the General Assembly

Article 8-If a decision to the contrary has not been taken, election of the Board of Directors and the Supervisory Boards is done with secret balloting whereas decisions regarding all other issues are taken with open vote. Secret ballots are gathered by casting ballots, stamped by the Chairman of the Meeting, in an empty bowl after being properly marked by the voting members and are determined by open counting upon completion of balloting. In open balloting, the method determined by the Chairman of the General Assembly shall be used. Decisions of the General Assembly are taken with quorum of the members attending the meeting. Insofar, decisions about amending the statute or dissolving the association can only be taken if more than two thirds of the members are present at the meeting.

Decisions Taken Without a Meeting or a Notice

Decisions taken with the written attendance of all members without gathering, as well as unanimous decisions taken by all members of the association without obeying the written notification method are valid. The fact that this kind of decisions are being taken shall not be counted in place of ordinary meetings.

Rights and Duties of the General Assembly

Article 9-Items listed below shall be discussed and decided by the General Assembly:

1- Election of the bodies of the association,,

2- Amendment to the statute of the association,

3- Discussion of the reports of the Board of Directors and the Supervisory Boards and clearance of the Board of Directors,

4- Discussion and acceptance completely or with alterations of the budget prepared by the Board of Directors,

5- Purchase of property necessary for the association or granting authority to the Board of Directors about selling currently held properties,

6- Examination of the regulations which shall be prepared by the Board of Directors about works of the association and approval thereof completely or with alterations,

7- Determination of the salaries, all kinds of funds, allowances and compensations that are to be paid to the non-public employee Chairman and members of the Board of Directors and the Supervisory Boards of the Association as well as daily wages and allowances that are to be paid to those members authorized for the services of the association,

8- Deciding whether the association should join or leave a federation,

9- Conducting international activities, joining or leaving international associations and institutions,

10- Establishing a trust,

11- Dissolving the Association,

12- Examining the other proposals of the Board of Directors and taking decisions regarding these proposals,

13- Realization of other duties which need to be carried out by the General Assembly in line with the legislation.

General Assembly shall supervise other bodies of the association and always can relieve them of duty if there is a valid reason.

General Assembly shall take the final decision about acceptance to or termination of membership. As the most authoritative body of the association, it carries out the duties and uses the authorities which have not been assigned to other bodies.

Formation, Duties and Rights of the Board of Directors

Article 10-Eleven full members and five replacement members of the Board of Directors shall be elected by the General Assembly.

In its first meeting after the election, the Board of Directors shall divide the tasks and elect a chairman, at least one vice chairman, general secretary and treasurer. With the condition that all members are notified, the Board of Directors may be summoned by the chairman at any time for a meeting. The meeting is held if one more than half of the total number of members is attending. Decisions shall be taken with quorum of the attending members.

In case of vacancies in full members of the Board of Directors due to resignation or for other reasons, it is compulsory to summon the substitute members to the meeting according to the number of votes they received.

Rights and Duties of the Board of Directors

Board of Directors shall do the following:

1- Represent the association or to authorize one or more of its members in this respect,

2- Carry out the transactions regarding the income and expense accounts and prepare the budget for the next term and submit the same to the General Assembly, determine and gather the funds and activity contributions, determine the monthly subscription dues at the beginning of each financial year for that year,

3- Prepare the regulations about activities of the association and submit the same for the approval of the General Assembly,

4- Purchase properties with the authority given by the General Assembly, sell assets &properties that belong to the Association, have buildings or facilities built, make rental contracts, establish pledges, liens and real rights on behalf of the association,

5- Establish agencies wherever necessary,

6- Apply the decisions taken in the General Assembly,

7- Prepare reports regarding the operating account table or balance sheet and income statement of the association and regarding the activities of the Board of Directors at the end of each operating year,

8- Implement the budget,

9- Decide about acceptance to and termination of memberships to and from the association,

10- Take all kinds of decisions for realization of the objectives of the association and apply the same,

11- Carry out other duties given by the statute to it and use the authorities,

12- Employ and dismiss the staff as necessary.

Formation, Duties and Rights of the Supervisory Board

Article 11-Supervisory Board is elected by the General Assembly as three full members and three replacement members. In case of vacancy due to resignation or for other reasons in the Supervisory Board, it is compulsory to summon the replacement members to duty according to the number of votes they received.

Rights and Duties of the Supervisory Board

Supervisory Board supervises whether the association is acting in line with the working items that needs to be carried out for the objectives and realization of the objectives mentioned in the statute; whether the books, accounts and records are kept in accordance with the legislation and the statute, and in line with the principles and procedures indicated in the statute of the association, for periods no longer than a year and submits the results of the supervision as a report to the Board of Directors and the General Assembly when it summons.

When necessary, the Supervisory Board calls the General Assembly for a meeting.

Association's Sources of Income

Article 12-Association's sources of income are listed below:

1- Subscription dues: Yearly contribution and shares for general activities are collected from the members. The amount and payment periods of yearly contributions are determined, increased, reduced, and split into instalments by the General Assembly.

2- Funds and activity contributions: In addition to the subscription dues, the association can request money from its members under the names of funds and activity contributions to be used for certain projects and in general, for the activities of the association. The amounts and rates of funds and activity contributions which shall be requested in this way shall be determined by the Board of Directors.

3- Donations and aids made by real persons and legal entities at their own will.

4- Incomes obtained from activities such as parties, trips and entertainments, shows, concerts, sports competitions, training seminars and conferences.

5- Incomes obtained from the assets of the association.

6- Donations and aids which shall be collected in accordance with the provisions of the legislation about collection of aids.

7- Incomes obtained from the commercial activities of the association which are being carried out to realize its objectives.

8- Other revenues.

Principles and Methods of Bookkeeping and the Books

Article 13-Principles of bookkeeping;

Association shall keep the books on operational accounting method. However, if annual gross income exceeds the limit stated in Article 31 of the "Associations' Regulations" legislation, the books shall be kept on balance sheet basis from the following year on.

In case of a switch to the balance sheet basis, if the said limit cannot be met for two subsequent accounting periods, it is possible to switch back to business basis from the following year on.

Notwithstanding with the above-mentioned situation, it is possible to keep the books on balance sheet basis with the decision of the Board of Directors.

If the Association founds a commercial business, separate books shall be kept for this business in accordance with the Tax Procedure Law.

Method of Registry

Books and registries of the Association shall be kept in accordance with the procedures and principles stated in the Associations' Regulations.

Books

Association shall keep the following books:

a) Books that shall be kept on business basis and the principles that should be followed are as follows:

1- Minutes Book: Decisions of the Board of Directors shall be recorded in this book with their dates and numbers chronologically and the decisions shall be signed by the members who attended the meeting.

2- Member Registry: Identification information, admittance and removal dates of the members of the association shall be recorded in this book. Admission fee and annual subscription dues may also be recorded in this book.

3- Document Registry: Documents that have been received and sent shall be registered in this book with their dates and numbers chronologically. Originals of the received documents and copies of the sent documents shall be stored. Copies of documents which have been received and sent through e-mails shall be stored by way of taking print-outs.

4- Inventory Book: Date of purchase of the inventories of the association as well as the places they have been used or given and deletion of the inventories the term of use of which has ended shall be recorded in this book.

5- Operation Account Book: Incomes received and expenses made on behalf of the association shall be recorded in this book clearly and regularly.

6- Receipt Registry: Serial and sequence numbers of the receipts, names, surnames and signatures of the persons who received and returned these documents and the dates when they received and returned these documents shall be recorded in this book.

b) Books that shall be kept in associations following the balance sheet accounting basis and the principles that should be followed are as below:

1- Books listed in subparagraphs 1, 2, 3 and 6 of paragraph (a) shall be kept also when books are kept on balance sheet basis.

2- Day Book, Ledger Book and Inventory Book: These books shall be kept and registered according to Tax Procedure Law and General Communiqué on Application of the Accounting System published pursuant to the authority this law gave to the Ministry of Finance.

Certification of the Books

Books which must be kept by the association shall be certified by the Municipal Associations' Office or a Notary Public before being used. These books shall be used until their pages are all completed and there shall not be any interim certification of the books. Yet, books kept on a balance sheet basis as well as form books and books with form pages must be re-certified annually in the last month of the year prior to the year that they will be used.

Preparation of the Income Statement and the Balance Sheet

In case of bookkeeping on operational accounting basis, at the end of each year (December 31st) (stated in Annex 16 of the Associations' Regulations), "Operating Account Statement" shall be prepared. In case of bookkeeping on balance sheet basis, at the end of each year (December 31st), balance sheet and the income statement shall be prepared based on the General Communiqués on Application of the Accounting System of the Ministry of Finance.

Incomes and Expenses of the Association

Article 14-Documents showing the incomes and expenses;

Incomes of the association shall be collected with the "Document of Receipt" (a sample of which is shown in Annex 17 of the Associations' Regulations). In case of collection of the associations' incomes through a bank, payment receipts and account statements that are prepared by the bank shall be accepted as receipt documents. Expenses of the association shall be made with expense documents such as invoices, retail sales slips and self-employment receipts. However, for payments of the Association stated in Article 94 of the Income Tax Law, notes of expenses pursuant to Tax Procedure Law and for other payments, expense voucher shall be issued (a sample of which is shown in Annex 13 of the Associations' Regulations). Delivery of goods and services to persons, institutions or corporations free of charge, (a sample of which is shown in Annex 14 of the Associations' Regulations), shall be done with "Kind Donation Delivery Document". Delivery of goods and services to the association by persons, institutions or corporations free of charge, (a sample of which is shown in Annex 15 of the Associations' Regulations), shall be accepted with "Kind Donation Receipt".

Receipts

Receipts which shall be used fo r collection of the association's incomes, (a sample of which is shown in Annex 17 of the Associations' Regulations), shall be published by a publishing house in accordance with the decision of the Board of Directors.

Publication, control, receipt from the publishing house, registering the same to the books, handover between the new and former treasurers and use of these receipts by the person(s) who shall collect incomes with receipts on behalf of the association and delivery of the collected incomes shall be done in accordance with the related provisions of the "Associations' Regulation" legislation.

Authorization Certificate

Person(s) who shall collect incomes on behalf of the association as well as their term of duty shall be determined with a decision of the Board of Directors. The Authorization Certificate including full identity, signature and a photograph of those who shall collect incomes (a sample of which is shown in Annex 19 of the Associations' Regulations), shall be issued in three originals and approved by the chairman of the Board of Directors. A copy of each of the authorization certificates shall be given to the Civil Administration Authority. Any amendments on the authorization certificate shall be conveyed to the Civil Administration Authority within fifteen days by the chairman of the Board of Directors.

Those people, who shall collect incomes on behalf of the association, shall begin to collect incomes only after submission of a copy of their authorization certificates to the Civil Administration Authority.

Use, renewal and return of the authorization certificates and other issues shall be handled according to the related articles of the "Associations' Regulation" legislation.

Submission of a Declaration

Article 15-"Association's Declaration" (shown at Annex 10 21 of the Associations' Regulations), related to the results of its activities in the former year as well as the income and expense transactions as of the end of that year, shall be filled in by the Board of Directors and submitted to the local civil administration authority by the Chairman of the Association within the first four months of each calendar year.

Notification Obligation

Article 16-Notifications to the civil administration;

Notification of the Result of the General Assembly

Within thirty days following ordinary and extraordinary general assemblies, "General Assembly Results Notification" involving the list of members that have been elected as full and replacement members of the Board of Directors and the Supervisory Board and for other bodies (submitted in Annex 3 of the Associations' Regulations) and its annexes shall be submitted to the civil administration authority by the Chairman of the Board of Directors:

The following documents shall be annexed to the general assembly results notification;

1- A copy of the report about the general assembly signed by the Council Chairman, Assistants to the Council Chairmen and the secretary,

2- In case of amendments on the regulations, new and former state of the amended articles of the association as well as the latest version of the regulations, each page of which has been signed by the Board of Directors.

Notification about Property

Civil administration authority shall be notified about the properties acquired by the Association within thirty days as of the date of their record at the land registry (submitted in Annex 26 of the Associations Regulations).

Notification about Receiving Aids from Abroad

If the Association receives aids from abroad, civil administration authority shall be notified about this prior to the transaction by way of submitting two originals of "Notification about Receiving Aids from Abroad" form (stated in Annex 4 of the Associations Regulations).

A copy of the decision of the Board of Directors about receiving aids from abroad, copies of the protocols prepared in this respect (if it exists), contracts and similar documents as well as the payment receipts showing that the aids have been transferred, account statements and similar documents shall be annexed to the notification form.

It is compulsory that aids in cash shall be received through bank transfers and notification shall be made before using these aids.

Notification about the Mutual Projects Conducted with Public Institutions and Corporations

A copy of the protocol or project prepared about the mutual projects conducted with public institutions or corporations related to matters about the duties of the association shall be annexed to the "Project Notification" (Shown on Annex 23 of Associations' Regulations) and submitted to the governorship of the place where the center of the association is located within a month of the date of the protocol.

Notification of Amendments

Civil administration authority shall be notified about the following changes within thirty days as of the date when the change took place: change of location of the association with the "Notification about Change of Location" form (stated in Annex 24 of Associations Regulations), changes about the bodies of the association excluding those made at the General Assembly with the "Notification about Change in the Bodies of the Association" (stated in Annex 25 of Associations Regulations).

Civil administration authority shall be notified about any amendments made on the statute of the association within thirty days as of the date when the change has been made at the General Assembly, in the annex of the General Assembly Results Notification.

Internal Audit of the Association

Article 17-Internal audit of the association can be done by the General Assembly, Board of Directors or the Supervisory Board as well as independent institutions. The fact that internal audit has been carried out by the General Assembly, Board of Directors or independent institutions shall not relieve the obligation of the Supervisory Board.

Supervisory Board shall make internal audit at least once a year. General Assembly and Board of Directors can make internal audits whenever necessary or independent institutions can be asked to make the internal audits.

Loan Procedure of the Association

Article 18-Association can establish agencies wherever necessary with the decision of the Board of Directors. For this purpose, a group of founders made of at least three members, authorized by the Board of Directors of the Association, shall submit the agency establishment notification stated in the Associations' Regulations and the necessary documents to the highest civil administration authority of the place where the agency is going to be established.

Opening Representative Agencies

Article 19-Association can open representative agencies wherever it deems necessary to conduct its activities. Civil administration authority of that place shall be notified about the address of the representative agency by the person(s) assigned as representative(s) with the decision of the Board of Directors. Representative agencies cannot be represented at the general assembly of the association.

Way of Amendment on the Statutes

Article 20- Statutes can be amended with the decision of the General Assembly. Two thirds of the members who have the right to attend the General Assembly shall be present for amendment of the regulations. If the meeting is adjourned due to lack of quorum, quorum shall not be sought in the second meeting. Yet, the total number of members attending this second meeting cannot be less than twice the total number of members of the Board of Directors and Supervisory Boards.

The quorum necessary to make amendments on the statutes is two thirds of the members who attend the meeting and who have the right to vote. The voting for amendments on the statutes shall be done with open voting in the General Assembly.

Dissolution of the Association and Liquidation of its Assets

Madde 21- General Assembly can any time decide to dissolve the association. Two thirds of the members who have the right to attend the General Assembly shall be present for negotiating dissolution. If the meeting is postponed due to lack of quorum, quorum shall not be sought in the second meeting. Yet, the total number of members attending this second meeting cannot be less than twice the total number of members of the Board of Directors and Supervisory Boards.

The quorum necessary to take dissolution decision is two thirds of the members who attend the meeting and who have the right to vote. The voting about dissolution of the association shall be done with open ballot in the general assembly.

Liquidation Procedure

When liquidation is decided by the General Assembly, liquidation of the money, assets and rights of the association shall be carried out by the Liquidation Committee which is composed of the latest members of the Board of Directors. This procedure shall begin when the dissolution decision is taken at the General Assembly or when the ipso facto termination is ascertained. During the liquidation period, "In Liquidation" shall be added to the name of the association.

Liquidation Committee is entrusted with and entitled to complete all the liquidation procedure of money, assets and rights of the association pursuant to the legislation. This committee shall examine the accounts of the association first. During the examination; books, receipts, expense documents, land registries and bank details and all other documents related to the association shall be determined and assets and liabilities shall be recorded in a protocol. During liquidations, creditors of the association shall be summoned and goods of the association shall be liquidated and the debts shall be paid. If the association is the creditor, then the debts shall be collected. All the money that remains after collection of the debts and payment of the loans shall be transferred to the entity which has been determined by the General Assembly. If the entity to which the money shall be transferred has not been determined by the General Assembly, it shall be transferred to the association located in the same city which has the closest objectives and has the most number of members.

The whole procedure regarding liquidation shall be written in the liquidation protocol and it shall be completed in three months except for those incidences where additional term is granted by the civil administration authorities for a justified reason.

Upon completion of the liquidation of the money, assets and rights of the association and the transfer procedure, the liquidation committee shall notify the civil administration authority of the principle office in writing about the situation within seven days and shall add the liquidation minute to this document.

Members of the latest Board of Directors are responsible for storing the books and documents of the association in the capacity of the Liquidation Committee. This responsibility can be given to a member of the Board of Directors. These books and documents shall be stored for five years.

Lack of Provision

Article 22-Turkish Civil Law and "Associations' Regulations" legislation enacted pursuant to this law and provisions of other related legislation about associations shall apply regarding those circumstances which have not been stated in the current statute.

This statute is made of 22 (twenty two) articles