The Revenues and Commission Fee of BİK in Turkey

Revenues — Art. 17

The revenues of the Agency are the following:

• 1 – The revenues to be obtained from the operation of the capital
• 2 – The commissions to be taken from announcements and advertisements
• 3 – The other revenues the Agency will obtain while performing its duties
• 4 – Donations

The Commission Fee — Art. 24

A commission fee of 15% on the announcements and advertisements that it is the duty of the Agency to intermediate in publishing, and of at most 10% on other announcements and advertisements, is deducted over the invoices and recorded as revenue of the Agency.

(Amended: 4/7/1988-Decree-Law-336/1; accepted as is: 7/2/1990-3612/41) — 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. These rates may be changed on the proposal of the General Assembly and with the approval of the President.

Changing the Rates: The 1961 Council of Ministers Decision

The Council of Ministers Decision on the Determination of the Commission Rates (decision date 15.10.1961, decision no. 5/1807, Official Gazette 31.10.1961 – 10945) concerns the amendment of the rates in the first paragraph of Article 24 of Law No. 195. We covered the detail in the decision determining the commission rates.

Other Fees — Art. 25

The fees the Agency will take for its special services, such as the composition of announcements and advertisements and the preparation of pictures and blocks, upon the request of those concerned, are determined by a tariff to be prepared by the Board of Directors.

Capital — 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.

Return of the Share — Art. 16

In the event of the bankruptcy of the holders of participation shares or the suspension of their activities, their shares are returned.

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. We covered the 1966 return decision in the return of the shares of the banks participating in the capital 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.

The Method of Allocation — Art. 20

The amount of the total annual revenue remaining after the application of the capital of the Agency and of the provision of Article 18 that is to be allocated to the performance of each of the duties of the Agency is determined on the proposal of the Board of Directors and by decision of the General Assembly. Separate accounts are opened accordingly.

The Power to Borrow — Art. 21

The Agency is empowered, by decision of the General Assembly, to contract loans from banks up to a maximum of half of its remaining assets at the end of the last financial year, for the performance of its duties.

Banking Transactions — Art. 22

Which national banks the Agency will deposit its money with, which of them it will use as intermediaries in collecting its receivables and paying its debts, how it will conduct its credit transactions and lending business, and the form of financing of its other activities are subject to a decision of the General Assembly.

The Assistance Obligation of the General Assembly — Art. 8/4

Conclusion

The revenues of the Agency are the revenues obtained from the operation of the capital, the commissions to be taken from announcements and advertisements, other revenues and donations. The statutory rate is 15% on the announcements it is the Agency’s duty to intermediate and at most 10% on the others; the Regulation in force, however, provides for 15% for all official and private announcements and advertisements. The General Assembly is empowered to reduce down to 10% the rate taken from newspapers participating in the administration of the Agency.