Examination of shareholders status who are unable to exercise their right of priority in capital increase in terms of equity and capital accounts

Abstract

Purpose-The right of priority is an important problem in capital companies, especially in joint stock companies. The aim of the study is to reveal possible financial losses in equity items if minority shares are not able to exercise their primary rights in case of capital increase in joint stock companies. Methodology -The study was conducted according to the qualitative research method, case study pattern. Sample Method was used to create the working group. In order to ensure the validity and reliability of data collection as a data collection tool in the research, document examination was applied in the direction of data diversification. In this context, data was collected by scanning articles and internet sources. X A. operating in our country from the official website of Public Lighting platform within the scope of data set. The Balance Sheet, Income Statement and profit distribution table data were used and these data were tested and the results were tried to be obtained from the financial statements by means of benchmarking. Finding-It is understood that minority shares in capital companies have probable financial losses in equity items if they are not able to exercise their priority right in raising capital at a cost. This condition is come up with the results of analysis and evaluation of the balance sheet, income statement and profit distribution table data of X A.Ş. Conclusion-The findings of the study, with X A.Ş's balance sheet for the years between 31.12.2015 and 31.12.2016 and from income statement data for the same years were obtained. As a result of the transactions, there was a decrease in the shares of minority shareholders. In case of liquidation with previous year's profits, it was determined that there was a decrease in dividends and financial rights. Therefore, it was concluded that the rights of the former shareholders in the company should be determined in the market conditions, so that no partner, even if they are a minority, should be held in such a way as to avoid loss of rights, and that the regulations should not be based solely on the logic of majority vote.