In this study, extraordinary reserve fund allocation conditions in joint stock company were investigated. Extraordinary reserves are the reserves set aside by the decision of the General Assembly. Since these are the distinctions made from the profit of the company, they are closely related to the shareholder's right to receive dividends. Therefore, it is important to determine the content of the conditions. In accordance with article 522/3 of the Turkish Commercial Code No. 6102, three conditions have been determined for the extraordinary reserves. These reserves are required for the provision of reserves to be re-provided assets, the company’s continuous development and as much as possible in terms of distribution of profit share is justified in terms of decision-making and general assembly. How these conditions were handled in the decisions of the Court of Appeals was examined; because many cancellation cases have been filed by the shareholders against the decision of the general assembly regarding the reserve fund. However, the financial statements of the company have been evaluated in terms of concretization of the conditions. The financial position and performance of the company are determined by means of the data in the financial statements. Finally, upon the decision of the general assembly to allocate a reserve fund, the question was asked whether the shareholder who thinks that the right of dividend has been violated can open a lawsuit for termination of just cause.