{"id":29339,"date":"2025-09-14T16:09:24","date_gmt":"2025-09-14T13:09:24","guid":{"rendered":"https:\/\/www.bicakhukuk.com\/?p=29339"},"modified":"2026-02-17T12:26:53","modified_gmt":"2026-02-17T09:26:53","slug":"appointment-of-trustees-for-company-management","status":"publish","type":"post","link":"https:\/\/www.bicakhukuk.com\/en\/appointment-of-trustees-for-company-management\/","title":{"rendered":"Appointment of Trustees for Company Management"},"content":{"rendered":"

The concept of trusteeship (kayy\u0131m tayini<\/em>) has become one of the most significant and debated mechanisms in Turkish corporate and criminal practice. It reflects the tension between the state\u2019s responsibility to combat crime and safeguard economic order, and the fundamental rights of companies, shareholders, and investors to manage their assets freely.<\/span><\/p>\n

In its essence, trusteeship involves the temporary transfer of management powers from company directors to court-appointed trustees. This extraordinary measure is intended to secure evidence, prevent further wrongdoing, and preserve business continuity in situations where ordinary corporate governance cannot function effectively. While trusteeship exists in many legal systems – in forms such as receivership, administration, or court-appointed custodians – Turkey\u2019s frequent and large-scale use of the measure sets it apart.<\/span><\/p>\n

Over the past decade, trusteeship has been applied to some of Turkey\u2019s most prominent conglomerates, including Koza \u0130pek, Kaynak, Boydak, and most recently Can Holding in 2025. These cases demonstrate both the reach and the controversy of trustee appointments, particularly when entire groups of companies or major media outlets are placed under the control of the Savings Deposit Insurance Fund (TMSF<\/a>).<\/span><\/p>\n

The growing importance of trusteeship raises pressing questions for businesses and investors: How does the law regulate trustee appointments? What safeguards exist against disproportionate interference? How do international human-rights standards and comparative models shape the debate? And, most crucially, how can companies, creditors, and foreign investors protect their rights when confronted with trustee-managed entities?<\/span><\/p>\n

B\u0131\u00e7ak Law Firm addresses these questions by combining deep expertise in Turkish criminal and corporate law with an international perspective. This article explores the legal framework, case practice, and policy implications of trustee appointments, while also offering practical guidance for stakeholders navigating this complex and evolving area of law.<\/span><\/p>\n

Background & Current Context: The Concept of Trusteeship in Corporate Law<\/span><\/h3>\n

Meaning and Purpose of Trusteeship<\/span><\/h4>\n

Trusteeship in corporate law refers to the judicial appointment of an individual or institution to temporarily assume management or oversight powers within a company. The purpose of this measure is to safeguard the company\u2019s assets, ensure business continuity, and protect the interests of shareholders, employees, creditors, and the public at large when ordinary governance mechanisms are unable to function effectively. It is not designed to permanently transfer ownership or dismantle corporate structures but to serve as a stabilizing mechanism in times of crisis.<\/span><\/p>\n

Trusteeship in Comparative Perspective<\/span><\/h4>\n

In civil-law jurisdictions, trusteeship or similar institutions are invoked to cure situations of organ paralysis (for example, where boards of directors are unable to reach quorum), to resolve conflicts of interest in ongoing litigation, or to stabilize companies facing insolvency.<\/span><\/p>\n

In common-law systems, parallel mechanisms exist in the form of receivership, administration, or court-appointed trustees in bankruptcy. These figures act under close judicial supervision and are tasked primarily with preserving value for creditors and ensuring the company operates within legal limits.<\/span>
Across jurisdictions, the underlying principle is the same: trusteeship is an extraordinary, temporary, and proportional remedy intended to balance private rights with broader legal and economic interests.<\/span><\/p>\n

Contemporary Uses of Trusteeship<\/span><\/h4>\n

Trusteeship today appears in three key contexts:<\/span><\/p>\n