LEGAL CHARACTERISTICS OF COOPERATIVES IN TURKISH LAW

In the realm of Turkish Law, the legislative framework governing cooperatives is bifurcated into two principal statutes: the Second Chapter (Book) of the Turkish Code of Commerce, which envisages general provisions pertaining to commercial companies, and the Cooperatives Code as a subject-specific legislative act. The incorporation of particular provisions concerning cooperatives within the Cooperatives Code has engendered a nuanced discourse regarding their legal persona. Central to this discourse is the determination of whether cooperatives are to be classified amongst commercial companies, thereby rendering them merchants, or whether they diverge from traditional commercial corporations due to their distinctive relationship with associations and foundations, thus generating debates and judicial deliberations on whether cooperatives ought to be categorized as a unique form of enterprise, divergent from conventional corporate structures. This academic interest and debate are not merely theoretical but have found expression in judicial pronouncements as well. A critical point of distinction for cooperatives, setting them apart from other commercial companies, is the foundational objective they profess. Unlike the quintessential commercial aim of profit maximization and distribution among constituents, cooperatives are predicated upon the attainment of legal benefits under more favourable conditions, facilitated through a framework of mutual aid and solidarity. This salient feature raises pertinent questions about the intrinsic nature of cooperatives and calls for a re-evaluation of their place within the matrix of commercial law.