Turkish lawyers and practice of law firms in Turkey

Turkish lawyers and practice of law firms in Turkey

The compatible or incompatible activities with law practice are regulated under a law dated 1969.
therefore, Turkish lawyers and practice of law firms in Turkey is regulated under this specific law.

Pursuant to article 11 of the Law on Turkish lawyers, "Services and duties rendered in exchange for payments such as a monthly salary, a fee, a daily wage, or dues; working as an insurance agent, a merchant, or a tradesman; and all activities not agreeing with the respectability of the profession are incompatible with activity of Lawyers in Turkey".

This provision which is a reflection of the code of ethics is to ensure the public that Turkish lawyers are acting in a professional manner and focusing on their professions without having any other self-interest practice which might cause conflict of interest or harm their performance.

On the other hand, article 12 of the Law on Turkish lawyers and law firms regulates the activities that are compatible with practice of Lawyers in Turkey. According to the regulation, Turkish lawyers are allowed to be a member of the parliament, professor, arbitrator, liquidator, chairman or member of charitable, scientific or political organizations.

The Law also allows Turkish lawyers and partners of law firms in Turkey to be the shareholders, partners, board members, chairman, and auditors of joint stock companies, limited liability companies, cooperative companies; and partners of commandite as well as presidents or members of the board of directors or auditors of state economic enterprises, public economic organizations; and corporations whose capital is owned by the State.

It is obvious that the law permits Turkish lawyers to be a partner or a member of the board of directors both in Joint Stock and Limited Liability Companies. What is being discussed in practical terms is that pursuant to the new Turkish Commercial Code, dated 2012, a single shareholder is sufficient to establish a Joint Stock or Limited Liability Company and a Limited Liability Company may be ruled by one manager. In that case, if a lawyer is the only manager or shareholder of the Limited Liability Company; it is inevitable for the lawyer would be virtually in trade which would be contrary to article 11 of the Law.