Balance Sheet Insolvency expresses the situation where the liabilities of a company exceed its assets. According to Article 324/2 of TCC Numbered 6732 and Article 179 of Execution and Bankruptcy Code (“EBC”) Numbered 2004, it is the board of directors duty to determine whether the company is balance sheet insolvent or not. If it is determined that the company is balance sheet insolvent, the board of directors are obliged to notify it to the competent commercial court.