The directors of companies operating in Antalya are responsible for the success of the company as well as its potential failures. The care and attention that directors must show while performing their duties is vital to protecting the rights of the company and its stakeholders. In the event of failure to show this care, directors may face compensation lawsuits. In this article, we will discuss compensation lawsuits based on the liability of company directors in Antalya.
Responsibilities of Company Directors
The Turkish Commercial Code (TTK) and related legislation grant company managers broad authority, while also requiring that these authorities be used responsibly. Managers must look after the company’s interests, abide by the rules of honesty and good faith, and act diligently and carefully. This responsibility covers many areas, from the company’s financial situation to business strategies and employee relations. If managers fail to fulfill their obligations, they are held responsible for any damages incurred to the company and its stakeholders.
The Concept of Duties
The basis of liability for company directors is the concept of “duty default.” A duty default is a default that results from a director’s failure to exercise due care in the performance of their duties. This may occur as a result of the director’s negligence, carelessness, or willful behavior. For example, a director’s failure to review the company’s financial statements, failure to pay the company’s debts on time, or making risky investments may be considered a duty default.
Basis for Compensation Claims
Compensation lawsuits filed against company directors due to negligence are initiated to compensate for the damages suffered by the company or its shareholders. These damages may be in the form of material damages (e.g. loss of profits, debts of the company) and moral damages (e.g. loss of reputation). The plaintiff is obliged to prove the director's negligence and to show that there is a causal link between this negligence and the damage suffered.
Legal Process for Compensation Cases in Antalya
In Antalya, compensation cases filed against company directors are conducted in accordance with the provisions of the Turkish Civil Code and the Turkish Commercial Code. The cases are heard in authorized commercial courts of first instance. The plaintiff must clearly state the type and amount of damages and the director's negligence in duty in the petition. During the lawsuit process, evidence is collected, witnesses are heard and expert examinations may be conducted. The court evaluates all evidence and makes its decision.
Importance of Evidence
The success of compensation claims is directly related to the strength of the evidence presented. The plaintiff can use a variety of evidence to prove the director’s negligence, including company documents, financial statements, emails, witness statements and expert reports. The director’s defence will also be considered by the court.
Ways Company Executives Protect Themselves
Company directors can protect themselves against potential compensation claims in several ways. These include organizing the company's management processes well, clearly defining authorities, documenting decision-making processes, conducting regular audits, and identifying and managing potential risks in advance. In addition, keeping detailed board meeting minutes and specifying liability limitations in company contracts are also important precautions. Legal support from a professional legal advisor is of great importance in reducing potential risks.
Services of Attorney Billur Güler Aslım
Atty. Arb. Billur Güler Aslım provides expertise in corporate law and compensation cases to company executives and companies in Antalya. Our office effectively assists company executives in minimizing potential risks and in the legal problems they encounter. Our consultancy services cover areas such as preparation of company contracts, improvement of management processes, representation and defense in compensation cases.
The responsibilities of company directors are extremely important for the success and stability of the company. Directors who do not fulfill their duties diligently may face serious financial and legal consequences. Therefore, it is of great importance for directors of companies in Antalya to receive professional legal advice in order to minimize legal risks and protect themselves. As Atty. Arb. Billur Güler Aslım, we continue to provide legal support to company directors in Antalya.