Expulsion of a shareholder

Expulsion ends a member's connection with a Turkish company against their will. Its purpose is to allow the company to survive by removing a member where the relationship among the owners has broken down.

In limited liability companies the company agreement may set out grounds for expulsion, and the company may also apply to the court to expel a member for just cause. In joint-stock companies free transferability is the rule, so expulsion is confined to exceptional mechanisms such as forfeiture of shares for default on capital contributions.

An expelled member must be paid the real value of their share. Disputes typically centre on the valuation and on whether just cause exists, and membership does not end until the court decision becomes final.