As the central securities depository of Turkey's capital markets, the Turkish Central Registry Agency (“CRA”) has launched a new information system that allows for board of directors and management board meetings to be held virtually in an electronic environment.
Called the Electronic Board of Directors System (“e-BDS”), this new technology can be used by all capital companies and can manage the entire meeting process. With e-BDS, boards of directors of joint-stock companies and management boards of equity firms can participate in meetings, send opinions and recommendations and cast votes.
In short, board members can make decisions virtually without conducting a physical meeting. With the e-BDS, board decisions can be made instantly and endorsed using secure electronic signatures. Ahead of every virtual meeting, board members are contacted by email and notified on how to access and operate the e-BDS. Furthermore, only authorised board members can access information and documents by logging on to the system with an electronic signature. If all of the board members attending the meeting sign the board decision using electronic signature through e-BDS, notarization of the decision will not be required.
To use the e-BDS and legally participate in virtual meetings, each board must have provisions for this specified in their company's Articles of Association and must use a government-approved system.
Implementing the e-BDS
- Putting the e-BDS into service: the e-BDS software app must be uploaded into the system of each participating company. Any person using the system on behalf of a company (i.e. the board secretary) must be authorised during the installation phase.
- Sharing information and documents: Meeting participants authorised and recognized by the system will be informed instantly about board meetings and will be given access to any shared documents.
- Meeting: Board of directors’ members can participate in the system both visually and audibly and can make comments and suggestions.
Fast, reliable, accurate
The new e-BDS system has been developed to ensure a fast, reliable and accurate trade registry system in Turkey for facilitating board of directors’ meetings. Both time and cost efficient, the system is especially effective for boards with members in different countries.
You could also follow up the official announcements on the e-BDS via the website of the CRA here.
For more information on the e-BDS, contact your regular CMS source or local CMS expert Hulya Kemahli.