The founding capital of the Press Advertisement Agency was formed by the compulsory participation of national banks and insurance partnerships. The 1966 decision governed the return of those shares.
The Details of the Decision
| Field | Information |
|---|---|
| Decision date | 08.12.1966 |
| Decision number | 6/7411 |
| Official Gazette date | 22.12.1966 |
| Official Gazette number | 12484 |
| Legal basis | The second paragraph of Article 16 of Law No. 195 |
| Proposal | The letter of the Ministry of Finance of 22/10/1966, No. 102 |
The Text of the Decision
The approval of the decision of the General Assembly of the Agency of 15 February 1966 on the return to them of the participation shares of the National Banks and insurance partnerships that participated in the capital of the Agency under Law No. 195 of 2.1.1961 on the Establishment of the Press Advertisement Agency, over four years, beginning in 1966 and at a rate of 25% each year, was decided by the Council of Ministers on 8/12/1966, upon the letter of the Ministry of Finance of 22/10/1966, No. 102, under the second paragraph of Article 16 of the said Law.
| Element | Content |
|---|---|
| Whose shares | The national banks and insurance partnerships that participated in the capital of the Agency |
| Start | Beginning in the year 1966 |
| Annual rate | 25% |
| Total period | Four years |
| General Assembly decision | 15 February 1966 |
| Approval | The Council of Ministers — 8/12/1966 |
The Basis: Law 195, Art. 16
In the event of the bankruptcy of the holders of participation shares or the suspension of their activities, their shares are returned.
(Amended: 4/7/1988-Decree-Law-336/1; accepted as is: 7/2/1990-3612/40) — Newspaper or magazine owners may take back their shares at any time, provided that they give notice to the Agency six months in advance. The ability of banks and insurance partnerships to take back their money depends on a decision of the General Assembly and the approval of the President.
| Shareholder | Condition for return |
|---|---|
| Newspaper or magazine owners | At any time, provided that notice is given to the Agency six months in advance |
| Banks and insurance partnerships | A decision of the General Assembly and the approval of the President |
| Any shareholder | Returned in the event of bankruptcy or the suspension of activities |
The Formation of the Capital — Law 195, Art. 15
Of the national banks whose head offices are in Ankara, İstanbul and İzmir, those whose capital and reserves total 20 million lira or more participate in the capital of the Agency by giving fifty thousand each, those with less than 20 million lira twenty-five thousand each, and insurance partnerships ten thousand lira.
Natural and legal persons who own newspapers and magazines published in those cities may also participate in the capital by giving ten thousand lira, and in the administration of the Agency within the framework of the provisions of this Law.
Provisional Article 2: The Collection of the First Capital
The Provisional Board has an account opened in the name of the Press Advertisement Agency at one of the National Banks. The Board notifies the matter by registered letter to the national banks and insurance partnerships whose head offices are in Ankara, İstanbul and İzmir. They deposit into the account opened, within fifteen days, the participation shares written in Article 15.
The Meaning of the Decision
The decision brought to an end the compulsory bank and insurance participation used in the founding finance of the Agency, by returning it in equal instalments spread over four years. After that date, participation in the administration of the Agency continued essentially through the optional participation of newspaper and magazine owners.
The Present-Day Advantage of Participation in the Administration — Art. 24
The General Assembly is empowered to reduce down to 10% the 15% commission fee to be taken from newspapers whose owners participate in the administration of the Agency. We covered the detail in the revenues and commission fee of the Agency.
The Reserve Fund and the Dividend — Art. 18
After the expenses of the Agency have been deducted, 5% of the surplus revenue is set aside as a reserve fund until it reaches the amount of capital to accrue at the end of the first financial year, taking that amount as the basis, and a dividend is also given to the holders of participation shares, provided that it does not exceed a rate of 2.5% of their shares.
Conclusion
The Council of Ministers Decision of 08.12.1966, No. 6/7411, approved the decision of the General Assembly of the Agency of 15 February 1966 on the return of the participation shares of the national banks and insurance partnerships that participated in the capital of the Agency, over four years, beginning in 1966 and at a rate of 25% each year. The decision was taken under the second paragraph of Article 16 of Law No. 195, upon the letter of the Ministry of Finance of 22/10/1966.