Most Common Legal Disputes in Turkish Companies in 2026

Operating a business in Türkiye offers significant commercial opportunities, yet it also exposes companies to a wide range of legal risks. As regulatory oversight tightens and commercial transactions become more sophisticated in 2026, legal disputes involving Turkish companies are increasingly complex, multi-layered, and high-stakes. Understanding the most common dispute areas is therefore essential for shareholders, directors, and foreign investors alike.

As Akkas CPA & Turkish Accounting Firm, a full-service company formation and governance firm based in Istanbul since 2017, we regularly advise domestic and international clients on dispute prevention and resolution under Turkish law. Below is a comprehensive overview of the most frequent legal disputes encountered by Turkish companies and how they can be effectively managed.

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Operating a business in Turkey’s dynamic economy presents remarkable opportunities, but it also comes with inherent legal challenges that can threaten even the most established companies.

After more than three years of providing corporate legal services in Istanbul, Akkas CPA & Turkish Accounting Firm has witnessed firsthand how legal disputes can disrupt business operations, drain financial resources, and damage corporate reputations.

Understanding these common legal disputes and implementing preventive measures is essential for any company conducting business in Turkey.

1. Shareholder Disputes and Partnership Conflicts

Shareholder disputes remain one of the most prevalent and damaging types of legal conflicts affecting Turkish companies. These disputes typically arise from disagreements over profit distribution, management decisions, strategic direction, or the interpretation of shareholder agreements. In closely held companies, where personal relationships intersect with business interests, these conflicts can become particularly acrimonious.

Common triggers include dividend distribution disagreements, disputes over board appointments, conflicts regarding capital increases or decreases, and accusations of breach of fiduciary duty. When shareholders cannot resolve their differences amicably, companies often face deadlock situations that paralyze decision-making processes.

The Turkish Commercial Code provides mechanisms for resolving such disputes, including mandatory mediation requirements and judicial dissolution proceedings, but prevention through clear shareholder agreements established during company formation remains the most effective strategy.

2. Employment and Labor Law Disputes

Employment-related disputes constitute a significant portion of litigation involving Turkish companies. Turkey’s labor laws provide substantial protections for employees, and disputes frequently emerge regarding wrongful termination, severance payment calculations, unfair dismissal claims, workplace discrimination, and unpaid wages or benefits.

The complexity increases when companies must navigate collective bargaining agreements, union relations, and mass layoff procedures. Employment disputes not only result in financial liabilities but also damage employee morale and corporate reputation.

Companies that invest in comprehensive employment contracts, clear workplace policies, and professional contract drafting services significantly reduce their exposure to labor-related litigation.

3. Commercial Contract Breaches

Contract disputes represent the backbone of commercial litigation in Turkey. These disputes arise when one party fails to fulfill contractual obligations, whether through non-performance, delayed performance, or defective performance.

Common scenarios include supplier failures to deliver goods or services as specified, payment defaults by customers, breaches of confidentiality or non-compete clauses, and disputes over contract interpretation.

The Turkish Code of Obligations governs commercial contracts and provides various remedies for breach, including specific performance, damages, and contract termination. However, the costs associated with corporate litigation can be substantial.

Companies that prioritize meticulous contract drafting, including clear performance standards, dispute resolution clauses, and force majeure provisions, position themselves to avoid or efficiently resolve contract disputes.

4. Intellectual Property Infringement

As Turkey’s economy becomes increasingly knowledge-based and innovation-driven, intellectual property disputes have surged. Companies face challenges related to trademark infringement, patent violations, copyright legal disputes, trade secret misappropriation, and domain name conflicts. The digital transformation of business has further complicated IP protection, with online infringement becoming more prevalent and difficult to monitor.

Turkish intellectual property law aligns with international standards, but enforcement requires vigilance and swift action. Companies must implement robust IP protection strategies, including proper registration of trademarks and patents, confidentiality agreements with employees and partners, and monitoring systems to detect potential infringement. When disputes arise, immediate legal intervention becomes crucial to prevent ongoing damage.

5. Merger and Acquisition Disputes

Turkey’s active M&A market inevitably generates disputes during and after transactions. These conflicts typically involve breach of representations and warranties, purchase price adjustments, earnout disputes, non-disclosure of material information, post-closing covenant violations, and valuation disagreements.

The complexity of mergers and acquisitions transactions creates numerous opportunities for misunderstandings and disputes. Thorough due diligence, precisely drafted transaction documents, and clear post-closing obligations help minimize these risks. When disputes do arise, they often involve substantial financial stakes and require sophisticated legal expertise to resolve.

6. Corporate Governance Failures

Governance-related legal disputes have become increasingly prominent as Turkish companies adopt more sophisticated organizational structures and face greater regulatory scrutiny. These disputes involve board of directors conflicts, breaches of duty of care or loyalty, minority shareholder oppression, related party transactions, and failure to maintain proper corporate records.

The Turkish Commercial Code imposes strict governance requirements on companies, particularly joint stock companies. Boards must act in the company’s best interests, maintain independence from controlling shareholders, and ensure transparent operations. Companies that establish robust corporate governance frameworks, including independent directors, audit committees, and clear reporting structures, substantially reduce their exposure to governance-related litigation.

7. Insolvency and Liquidation Disputes

Financial distress creates a fertile ground for legal disputes. As companies face economic challenges, conflicts emerge regarding creditor priorities, fraudulent transfers, director liability for continuing operations while insolvent, preference payments, and asset valuation disputes.

Turkey’s bankruptcy and restructuring laws have evolved to provide more flexible options for financially troubled companies, including concordat proceedings and restructuring frameworks. However, these processes involve complex legal requirements and tight deadlines.

Directors must understand their obligations when companies face financial difficulties, as personal liability may attach for certain actions taken while the company is insolvent. Professional guidance during company liquidation procedures ensures compliance with legal requirements and minimizes potential disputes.

Prevention Through Professional Legal Support

While disputes sometimes prove unavoidable, many legal conflicts stem from inadequate planning, unclear documentation, or failure to address emerging issues promptly. Companies that invest in professional legal counsel from formation through growth, restructuring, and eventual exit significantly reduce their dispute exposure.

Preventive measures include comprehensive shareholder agreements drafted during company formation, regular legal audits to identify potential compliance issues, clear employment policies and contracts, robust contract management systems, proactive intellectual property protection, structured corporate governance frameworks, and immediate legal consultation when disputes emerge.

Contact us for Dispute Resolutions in Turkish Companies

Since 2017, Akkas CPA & Turkish Accounting Firm has served as Istanbul’s trusted legal partner for both domestic and international companies navigating Turkey’s complex corporate legal landscape. Our multilingual team of experienced attorneys provides comprehensive legal services across all aspects of company formation, governance, and dispute resolution.

Whether you’re establishing a new business in Turkey, managing an existing company, or facing a legal dispute, our firm offers the strategic counsel and practical solutions you need to protect your interests and achieve your business objectives. Don’t wait until a dispute escalates into costly litigation—contact Akkas CPA & Turkish Accounting Firm today for a consultation and discover how our three years of experience can help safeguard your company’s future.

Visit our offices in Istanbul or reach out to our team to discuss your specific legal needs. Let us help you build a stronger, more legally resilient business in Turkey.