The Company and the Board of Directors aim to conduct all related party transactions in compliance with the Turkish capital market legislation, tax legislation and other applicable legislation. The Board of Directors is responsible for the implementation of this policy and for ensuring that all guidelines and procedures prepared within the scope of this policy are fully implemented and monitored.
Non-continuous related party transactions that exceed 1% of the gross profit reported in the Company’s income statement for the previous year are subject to the approval of the Board of Directors. For the execution of such non-continuous related party transactions, the approval of the majority of the independent board members must be obtained. If there are two independent members on the Board, both must approve the respective non-continuous related party transaction. If the majority approval of the independent board members cannot be obtained, then the approval of the General Assembly is required for the execution of the respective transaction.
There is no materiality threshold for continuous related party transactions and the Board of Directors is responsible for adopting a framework resolution for all continuous related party transactions.
The Audit Committee, in its quarterly meetings following the publication of the financial statements for the relevant quarter, examines the related party transactions carried out during the quarter in accordance with the annual approval granted based on the framework resolution of the Board of Directors.
Board of Directors’ resolutions regarding related party transactions are considered "inside information" and are disclosed to the public in accordance with the relevant capital market regulations.
Additionally, following its annual review of related party transactions, the Audit Committee submits a report to the Board of Directors, which is subsequently included in the Company’s annual report.