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| Corporate
governance is “the” major hurdle for Foreign Direct |
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| Investment in Turkey. |
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| CORPORATE GOVERNANCE AND
PRIVATE EQUITY |
| Current Practice |
| Private Equity Fix |
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| · | Family owned
companies with |
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| informal decision
making |
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| · | Adventurous tax
management |
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| to avoid paying
inflation taxes |
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| · | Complex webs of
related party |
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| companies |
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| · | Absence of
realistic management |
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| reporting due to
complex structure |
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| · | Inability to
eliminate underperforming |
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| shareholders in
management positions |
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| · | Functioning Board
and proper |
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| business planning
processes |
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| · | Professional and
“legal” tax |
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| management |
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| · | Consolidated and
manageable |
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| structures |
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| · | Investment in
systems to report |
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| correct key
indicators on time |
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| · | Enforcing the
meritocracy from the |
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| Board down to
management |
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| PE
will improve |
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| corporate
governance and |
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| catalyze
FDI to portfolio |
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| companies |
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