New law mandates presidential OK for municipal ventures

ANKARA

A new law published in Türkiye’s Official Gazette on May 22 requires municipalities and affiliated entities to obtain presidential approval before establishing companies or cooperatives.

The regulation applies to local administrations, their affiliated bodies, municipal unions and companies they control directly or indirectly, according to the legislation.

Under the amendment, those entities must seek approval from President Recep Tayyip Erdoğan before founding new companies or cooperatives. The requirement also covers participation in existing or future companies and cooperatives, acquisition of shares and other partnership arrangements.

The change was introduced through Article 17 of a broader law amending the Land Registry Law and several other statutes, including the privatization law numbered 4046.

The measure comes amid ongoing tensions between the government and opposition-run municipalities.