The representation and management authorization of Karon Menkul Kıymetler A.Ş. (Karon) against whom “Progressive Liquidation” award was given under the resolution No. 39, dated 16.08.2002 of the Board, has passed to the Fund as of the same date in accordance with the Capital Market Law Article 46/B paragraph 3. 78 disputes are followed up by the Fund by representation of Karon. Of these disputes, 32 are legal actions and 46 are for execution proceedings. 

Execution Proceedings: 

As we have laid down in the annual report for the year 2002, the total amount of 9 proceedings, without any court decision, that have been initiated by Karon on different dates before award of progressive liquidation was given by the Capital Market Board against Karon is TL160,446,269,642.- in total, except for the interest run or to run. The total amount of 12 proceedings without court decision that have been initiated as a result of examination made by the Fund on the books and records following the award of the progressive liquidation against Karon is TL842,490,708,900. The total amount of 6 foreign Exchange proceedings started by the fund against the drawers and guarantors of the bills of exchange issued by Karon is TL169,191,348,500. Executive proceedings without any court decision were started by the Fund against 31 persons who was determined to owe to the Intermediary Institution in 2003. Total amount of these executive follow-ups is TL76,670,101,814. 3 of the said executive proceedings became firm, 14 of which discontinued due to objection and no notification made to the debtors in 14 of them. Two of the finalized executive proceedings were enforced and with respect to the other one the debtor undertook to make payment by installments. Again for continuity of the executive proceedings that have discontinued due to objection, the Fund opened legal action for cancellation of 12 objections in this period and the said legal actions continue. In the same period, 14 executive proceedings without any court decision were started against Karon and one executive proceedings with court decision was started by the Istanbul Chamber of Commerce. These proceedings were discontinued as per CML Article 46 paragraph 2. Total amount of these proceedings isTL47,428,026,598.

Legal Actions :

Those Followed up as Claimant Total 19 legal actions where Karon is claimant are followed up by the Fund. 14 of these actions are for cancellation of objection. 12 of the legal actions for cancellation of objection still continue. Action for receivable amounting to TL710,885,303,376.- against the former general manager of the Intermediary Institution and legal action for cancellation of disposal were opened by the Fund. Furthermore, three legal actions were opened before the Labor Courts for cancellation of the administrative fines awarded against the Ministry of Labor and Social Security Institute Provincial Directorate and two of these legal actions completed as against. The said awards were appealed and their examination by the Supreme Court continues. For the other legal action, award is about to be given..

Those Followed Up as Defendant Total 13 legal actions where the Intermediary Institution appears as defendant are followed up by the Fund. 9 of these legal actions completed. In two labor legal actions completed as against, the said awards were appealed and the examination of them is continued by the Supreme Court. Other two awards are in favor of the Intermediary Institution and it was appealed by the opposite party.