Turkey’s New Company Law paves way for mandatory electronic proxy voting

A new Company Law came into force in Turkey in August 2012. The new law introduces a host of new corporate governance regulations. It is also very forward looking in its requirements for companies to use electronic communication. Critical amongst its new provisions is the requirement for companies listed on the Istanbul Stock Exchange to allow shareholders, custodians and intermediaries to participate and vote at general shareholders meetings via an electronic platform. With this provision, Turkey becomes the first country introducing a mandatory requirement for electronic proxy voting. The system was inaugurated on October 1st, 2012. The system, called e-GEM, allowsfor the streaming of annual general meetings in real time and lets shareowners communicate with each other, vote before the meeting, and even change their vote as an annual meeting occurs. Read more at the Harvard Law School Forum on Corporate Governance and Financial Regulation.