Company Vehicle, Property or Equipment Used Personally by a Partner in Turkey: Legal Remedies 2026 Updated Guide

What can a Turkish company or other shareholders do when a partner personally uses company vehicles, real estate, machinery or equipment? Learn about repayment, compensation, management liability, evidence, injunctions and litigation in 2026.

Company assets belong to the company, not automatically to its shareholders or partners. A shareholder’s ownership interest does not ordinarily give that person an unrestricted right to personally use a company-owned vehicle, apartment, office, machinery, computer, equipment or other asset without a proper corporate or contractual basis. When a partner uses corporate property for private purposes, disputes may arise concerning repayment of benefits, compensation for company losses, management liability, unauthorized transactions, accounting records and protection of company assets. The legal response in Turkey depends particularly on the type of company, the partner’s management position, the corporate approvals obtained, the nature and duration of the personal use and whether the company suffered measurable loss.

Does a Partner Own Company Assets?

No. The distinction between the legal personality of the company and the individual shareholder is fundamental.

A person may own shares in a company, but this does not mean that the shareholder personally owns a corresponding percentage of each company vehicle, property, bank account or piece of equipment.

For example, a shareholder holding 50% of a company cannot ordinarily claim that they personally own 50% of a vehicle registered in the company’s name.

Can a Partner Use a Company Vehicle for Personal Purposes?

It depends on the legal basis for that use.

A company may legitimately provide a vehicle to a director, manager, employee or shareholder under an employment arrangement, management agreement, board decision, shareholder resolution or another valid corporate arrangement.

The legal problem becomes more significant where the vehicle is effectively appropriated for private use without authorization or appropriate accounting treatment.

Personal Use Should Be Distinguished From Authorized Benefits

Not every personal use of company property constitutes wrongdoing.

The investigation should first determine whether the company expressly or implicitly authorized the benefit and whether it was provided as part of remuneration or another legitimate commercial arrangement.

The corporate records are therefore critical.

What If the Partner Takes the Company Vehicle Home Permanently?

Long-term exclusive possession may justify closer examination.

Relevant questions include whether the partner is also a manager, whether other managers approved the arrangement, who pays fuel and maintenance expenses, whether the vehicle remains available for company business and whether the benefit is properly reflected in corporate records.

Company-Owned Real Estate Can Create Larger Disputes

A partner may occupy a company-owned apartment, villa, office, warehouse or commercial property personally.

If the occupation has no valid corporate basis, the company may potentially suffer loss equal to rent that could otherwise have been earned.

The legal strategy should therefore consider both recovery of possession and compensation for unauthorized use.

Can the Company Demand Rent?

Potentially.

Where a shareholder has occupied company real estate without a contractual or corporate basis, the circumstances may support a claim concerning the economic benefit obtained from that use.

The applicable legal characterization and calculation should be determined according to the particular facts.

Machinery and Equipment Can Also Be Misused

The dispute is not limited to cars and real estate.

Company machinery, construction equipment, computers, generators, production tools, agricultural equipment and other assets may be taken to a shareholder’s separate business or personal property.

This can create both direct and indirect company losses.

Using Company Equipment in Another Business Is Particularly Serious

Suppose a shareholder owns another business and transfers company machinery there without payment.

The company may lose the ability to use or rent the machinery while another enterprise receives the economic benefit.

Evidence concerning location, operating hours, invoices, transportation and users of the machinery should be preserved.

What If the Partner Is Also a Company Manager?

The dispute becomes more complex.

A manager or board member may possess authority over company assets but that authority exists for corporate purposes. Management authority should not automatically be treated as permission to use company property for unlimited personal benefit.

The person’s management duties and corporate authorization should therefore be examined separately from their shareholder status.

Directors and Managers May Face Liability

Depending on the company type and facts, managers or directors may face liability where breaches of their legal or corporate duties cause damage to the company.

The analysis should focus on the specific duty, conduct, damage and causal connection rather than merely the existence of personal use.

Review the Articles of Association

The company’s articles may contain rules concerning representation, management authority, benefits, related-party transactions or corporate approvals.

These provisions should be examined before litigation begins.

Review Board and Shareholder Resolutions

A partner accused of unauthorized use may argue that the arrangement was approved.

Obtain board resolutions, general assembly records, management decisions and internal correspondence.

The absence or existence of approval can materially affect the case.

Accounting Records Are Critical Evidence

Review how the company recorded the relevant asset and associated expenses.

For a vehicle, investigate fuel, insurance, maintenance, tolls, parking and repair expenses. For property, examine utilities, maintenance, taxes and rental records.

The accounting treatment may reveal the economic scale of personal use.

Bank Statements Can Reveal Company-Funded Personal Expenses

Company accounts may show payments for expenses connected with the shareholder’s personal use.

Repeated fuel purchases, household expenses, private renovations or equipment costs may provide important evidence.

Transactions should be analyzed individually rather than characterized broadly without documentation.

Preserve Vehicle Records

For company vehicles, useful evidence may include mileage records, GPS data lawfully obtained, toll records, fuel expenses, service history, parking records and company travel documentation.

Personal-data and privacy requirements should be considered when collecting digital tracking evidence.

Preserve Property Evidence

For company-owned real estate, evidence may include title records, photographs, utility bills, correspondence, occupancy records, lease information and witness evidence.

Determine exactly when the shareholder began occupying the property and whether the company ever requested payment.

WhatsApp and Email Messages May Be Relevant

Messages can demonstrate whether the shareholder requested permission, acknowledged personal use or refused to return the asset.

Original digital evidence should be preserved rather than relying solely on isolated screenshots where authenticity may later be disputed.

Send a Formal Demand for Return

Where company property is being retained without authorization, a formal demand may be appropriate.

The notice should identify the asset, company ownership, requested action and relevant deadline.

It can also help document that continued possession after the demand was expressly opposed by the company.

Can the Company Recover the Vehicle or Equipment?

Potentially.

If the asset belongs to the company and another person has no continuing legal basis for possession, legal measures for return may be considered according to the circumstances.

The correct action depends on the nature of the asset and underlying relationship.

Can an Injunction Be Requested?

Where there is a genuine risk that company property will be sold, transferred, concealed, damaged or otherwise placed beyond recovery, interim judicial protection may be considered.

The requested measure should be proportionate to the concrete risk.

What If the Partner Tries to Sell the Company Asset?

The first question is whether the shareholder has legal authority to represent the company.

A shareholder who is not an authorized representative ordinarily should not be assumed to have authority merely because they own shares.

If an authorized manager attempts to dispose of company assets improperly, representation rules and the circumstances of the transaction require separate analysis.

Transactions With Related Persons Should Be Investigated

A company asset may be transferred to the shareholder’s spouse, relative, another company or related person.

Review the price, payment records, valuation, corporate approval and commercial purpose.

A transaction documented as a sale should not automatically be accepted as commercially genuine without examining whether payment actually occurred.

Below-Market Transfers Can Cause Company Loss

Selling a valuable company asset to a shareholder or related person for substantially below its market value may cause measurable corporate damage.

Historical valuation evidence should be obtained as soon as possible.

Independent Valuation Can Be Important

Vehicles, machinery and real estate may require expert valuation.

The relevant figure may include the asset’s value, reasonable rental value, depreciation or loss caused by unauthorized use depending on the claim pursued.

Can the Other Shareholders Sue Personally?

This depends on whose right was violated.

A critical distinction exists between damage suffered directly by the company and separate damage suffered personally by an individual shareholder.

A decrease in company assets does not automatically mean that every shareholder can simply demand the same amount personally.

The correct claimant and remedy should therefore be identified carefully.

Company Damage Should Be Calculated Separately

Possible company losses may include loss of rental income, operating expenses paid by the company, physical damage, depreciation, loss of business use and other provable financial consequences.

Avoid exaggerated calculations that cannot be supported by evidence.

Can the Benefit Obtained by the Partner Be Recovered?

Potentially, depending on the legal basis of the claim.

The analysis may involve corporate-law duties, contractual relationships, restitution principles or other private-law remedies according to the facts.

The claim should be structured around the actual transaction rather than relying on a single generic theory.

What If All Shareholders Previously Accepted the Arrangement?

Longstanding approval can materially change the dispute.

Investigate whether the benefit was openly known, consistently recorded and authorized or whether it was concealed from the other shareholders.

A shareholder should not automatically characterize an arrangement as unauthorized merely because the relationship later deteriorated.

Minority Shareholders Should Request Corporate Records

Where permitted under the applicable company-law framework, information and inspection rights may help uncover how corporate assets have been used.

Accounting ledgers, resolutions, asset registers and related-party records can be particularly important.

General Assembly Action May Be Necessary

Depending on the company type and management structure, the issue may need to be brought before the general assembly.

Questions concerning management, liability, release, removal or litigation strategy may require appropriate corporate decision-making.

Removal of a Manager May Become Relevant

If misuse is continuing and the person controls corporate assets through a management position, management authority itself may become part of the dispute.

The applicable removal procedure depends on the company’s legal form and circumstances.

Deadlock Companies Require Special Strategy

The situation can become particularly difficult in a 50/50 company.

One shareholder may control a vehicle, property or equipment while neither side can obtain the corporate majority required for an effective response.

In such cases, the asset dispute may form part of a broader shareholder deadlock requiring coordinated corporate and judicial remedies.

Do Not Remove Assets by Force

Other shareholders should avoid attempting to physically recover vehicles, enter occupied property or seize equipment through self-help measures that could create separate legal disputes.

Use documented corporate and legal procedures.

Criminal Complaints Should Not Replace Commercial Analysis

Some conduct involving company assets may potentially raise criminal-law questions depending on the facts and intent. However, every disagreement over company property is not automatically a criminal offense.

Corporate ownership, authorization, management powers, accounting treatment and contractual arrangements should be examined before characterizing the dispute criminally.

Tax Consequences Should Also Be Reviewed

Private use of corporate assets and company-funded personal expenses may create tax and accounting consequences.

A corporate dispute can therefore expose historical accounting practices that require separate tax review.

Review Insurance Coverage

If a company vehicle or machinery is damaged while being used personally, insurance coverage should be checked immediately.

Unauthorized use, driver identity and policy conditions can affect the insurance dispute.

What If the Asset Is Damaged?

Document the condition immediately.

Obtain photographs, repair reports, expert evidence and invoices. Determine whether the damage occurred during personal use and whether the company or insurer paid the repair costs.

Limitation Periods Should Be Checked

Historical unauthorized use may involve different claims and different limitation questions.

Do not assume that all claims concerning years of personal use can be pursued indefinitely.

Settlement Can Include More Than Repayment

A shareholder settlement can address return of assets, compensation, management powers, related-party balances, share transfer, release and future use of company property.

In serious shareholder disputes, resolving only the vehicle or property issue may leave the underlying corporate conflict untouched.

2026 Practical Legal Strategy

A company facing suspected personal use of corporate assets should first create a complete asset file. Establish ownership, identify the person controlling the asset, determine the legal basis claimed for possession, collect corporate approvals, review accounting records, calculate company-funded expenses and preserve evidence of use.

The company should then decide whether the immediate priority is return of the asset, prevention of transfer, compensation for past use, management action or a broader shareholder-dispute strategy.

Frequently Asked Questions

Can a shareholder use a company car whenever they want?

Share ownership alone should not be treated as unrestricted authorization to use company property. The legal basis and corporate arrangements should be examined.

Can the company ask the shareholder to return the vehicle?

Potentially, where the company owns the vehicle and the shareholder lacks a continuing legal basis for possession.

Can rent be claimed for a company apartment occupied personally?

Potentially. The authorization for occupation and economic benefit obtained should be examined together with the appropriate legal basis for the claim.

Can fuel and maintenance expenses be recovered?

Potentially, particularly where company funds were used for unauthorized personal expenses. Each expenditure should be documented.

What if the partner is also the manager?

Management authority does not eliminate the distinction between company property and personal property. The manager’s powers, duties and approvals should be examined.

Can other shareholders request an injunction?

Depending on standing, corporate structure and the concrete risk to company assets, interim judicial protection may potentially be considered.

What if the company asset was sold cheaply to the partner’s relative?

The transaction should be examined for authority, corporate approval, payment, market value and resulting company loss.

Can WhatsApp messages prove personal use?

They can potentially form part of the evidence. Authenticity, context and lawful acquisition should be preserved carefully.

Can the shareholder face personal liability for company losses?

Potentially, particularly where the person also has management duties and their conduct causes provable company damage. The applicable liability rules depend on the company type and facts.

What should the company do first?

Secure the evidence before the dispute escalates. Establish ownership, authorization, possession, expenses and economic loss, then select the corporate and judicial remedy appropriate to the particular asset and company structure.

Client-Focused Legal Support for Shareholder and Company Asset Disputes

Disputes involving personal use of corporate assets can develop into broader conflicts concerning company vehicles, real estate, machinery, unauthorized expenses, management liability, related-party transactions, minority shareholder rights and asset protection.

Fırat Fesih Kaya Law Office assists shareholders, companies, foreign investors and managers in corporate asset and shareholder disputes in Turkey. Lawyer Fırat Fesih Kaya provides legal assistance in investigating unauthorized asset use, preserving company property, pursuing compensation and return claims, evaluating manager liability and coordinating broader shareholder-dispute strategies.

Phone:
+90 312 434 22 22

Mobile:
+90 532 769 22 22

Email:
info@firatfesihkaya.av.tr

Address:
Mevlana Boulevard No:221, Yıldırım Tower, Office No:148
06520 Balgat, Çankaya, Ankara, Turkey