WHAT ARE THE EFFECTS OF COVID-19 TO THE DISCLOSURE REQUIREMENTS OF THE PUBLICLY-HELD COMPANIES? 20 March 2020

As known, pursuant to the Communiqué on Material Events numbered II.15.1, the publicly held companies should make timely and precise disclosures on Public Disclosure Platform. The relevant communiqué defines material events as any events, information or development which may affect the value or the price of the securities or the investment decisions of the investors. Accordingly, the publicly held companies must make disclosures on any material events  which may affects the value and price of the shares representing its share capital and events affecting the investment decision of the investors.

Upon declaration of World Health Oganization Covid-19 pandemic and incidence of Covid-19 cases in our country, in order to prevent the spread of Covid-19, the government issued a “stay-at-home” call and accordingly, people started to work from home or companies temporarily suspended their activities / temporarily shut down the factories or stores, shopping malls in order to prevent the spread of Covid-19. Although, the Capital Markets Board has not yet issued any legislation or guidance for publicly held companies, we believe, such events arising from the uncertainity of Covid-19 effects and its duration, affects the investment decision of the investors / the value, price of the relevant publicly- held companies shares. Accordingly, we believe, publicly held companies should make public disclosures on the Public Disclosure Platform regarding their measures on Covid-19 such as, temporarily shut down.