Complying with one share-one vote principal is awarded by Turkish Sharehoders Association
Eliminating the discriminatory treatment of company shareholders by introducing the principle of "one-share, one-vote" is one of the most important pillars of Corporate Governance. A wide range of dual-class structures exist. In some cases, the superior class benefits from dividends more than others. Essentially, the term covers any structure that confers a disproportionate amount of control on one group of shareholders in relation to their equity participation in the company.
Dual-class structures are unfair and give economic power to superior shareholders while facing the same financial risk.
Akbank is awarded with a prize by Turkish Shareholders Association after repurchasing of founder's shares in order to comply with “one share-one vote pricipal”. This attempt is accepted as revolutionary by the Association because Akbank is the first company eliminating dual class shares.
At the Extraordinary General Meeting of Shareholders and the Meeting of Founders and Usufructuary Shareholders on June 23, 2005, a decision was taken to buy-back 2,538 founder and usufruct shares using the Bank’s extraordinary reserves, after which these shares were to be cancelled and disposed of. This procedure had to be undertaken because the existence of these securities, corresponding to a 10% profit share out of the Bank’s distributable profit and having no voting rights, was not compatible with the principles of contemporary corporate governance and that unnecessary pressure was being exerted on the value of Akbank shares
Accordingly, this repurchasing transaction resulted in:
- An increase in profit distributed to shareholders with ordinary shares,
- A reduction in surplus equity capital,
- An increase in return on equity and therefore a rise in Akbank’s market value,
- An improvement in the quality of corporate governance,
- An enhancement of transparency in possible strategic cooperation and acquisitions in the future.
| Large-Cap Banks | Voting Rights | Dividend Rights |
| AKBANK | No privileges | No privileges |
| GARANTI | No privileges | % 10 of payable dividend will be paid to founder shares |
| ISBANK | No privileges | No privileges |
| YKB | No privileges | No privileges |
| Mid -Cap Banks | Voting Rights | Dividend Rights |
| BANKASYA | Board of Directors and Statutory Auditors are elected from those nominated by the minimum 51% of the total votes of the Group (A) shareholders present at that meeting. | No privileges |
| DENIZBANK | No privileges | |
| FINANSBANK | No privileges | % 10 of payable dividend will be paid to founder shares |
| FORTIS | No privileges | No privileges |
| TEB | No privileges | No privileges |
| TSKB | No privileges | % 10 of payable dividend will be paid to founder shares |
