The portion of a Turkish company's net profit distributed to shareholders in proportion to their shares, upon a general assembly resolution.
All termsA dividend (kâr payı) is the amount a shareholder receives from a Turkish company's profit in proportion to their shareholding, and it is one of the core financial rights attached to a share. Dividends may be paid only out of net profit for the period and reserves set aside for that purpose.
The distribution decision is a non-delegable power of the general assembly. After the financial statements are approved and statutory reserves are allocated, the assembly resolves whether the remaining profit will be distributed. Once resolved, the shareholder acquires an enforceable claim against the company.
Profitability alone does not oblige distribution; the assembly may retain earnings. However, persistent retention without legitimate justification can trigger disputes with minority shareholders and annulment actions.
The glossary is provided for information only and does not constitute legal advice. What a term means in a specific case depends on the details of the file.