Directory Image
This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Policy.

The legislation for company management in Switzerland

Author: Mr Dimitri Rusca
by Mr Dimitri Rusca
Posted: Nov 20, 2017

The Code of Best Practice for Corporate Governance was introduced in 2002 and ever since it has become an important guide for Swiss companies in drafting their interior regulations in terms of company management. From a legal point of view, the main regulatory legal frameworks on company management are the Swiss Code of Obligations, the Federal Act on Mergers, Demergers, Transformations and Transfer of Assets and the Criminal Code.

A company’s Articles of Association will also contain information about the shareholders’ rights and the management board’s duties and responsibilities. Public companies in Switzerland are subject to other regulations beside the ones mentioned previously. Among theses there are the Federal Ordinance against Excessive Compensation in Public Corporations and the Federal Act on Stock Exchanges and Securities Trading (SESTA).

The shareholders of Swiss corporates

The powers of shareholders in Swiss companies are defined in the company’s Articles of Association. The head of the company has the right to make decisions about company staffs. They only will elect and release the members in the management board, will also name the auditors of the company and are also involved in accounting matters, such as the approval of the annual financial statement. The shareholders will decide the company’s purpose and will make decisions in merger and acquisition cases or liquidation. Shareholders must hold an annual general shareholders’ meeting.

Basically the top level management is the one establishing a company’s goals. They can only decide the course of action in order to achieve those goals and will decide the persons in charge with running the company’s business. Among the most important duties of the board of directors are the supervision of the company’s staff, the organization of the accounting system, the nomination and removal of the company’s management members and representatives. The board of directors must also draft the annual report and implement the general shareholders’ meeting resolutions. The board of directors will answer to the shareholders directly. There are no requirements regarding the number of the members of the board of directors, but it must be sufficient to ensure the efficiency of the decision making process. However, experienced individuals from different fields are recommended in order to ensure the company’s success.

Special attention must be paid to the Swiss company management with minimum share capital when opening a company in Switzerland. You need 20,000 CHF if you want to register a limited liability company and 100,000 CHF for a joint stock company. There are situations in which special licenses or permit is required. These depend on the business activity the company will undertake.

Swiss citizenship can be obtained by birth right, by marrying a Swiss national or by naturalization which is also the most common way. You need to live and work in Switzerland for 12 years before applying for a Swiss passport.

Foreign citizen are required to obtain a Swiss work permit before coming to the country. For details about the application procedure you can ask our lawyers in Switzerland for help.

Individuals are subject to the income tax which is calculated annually, while companies are subject to the corporate tax which is levied at federal and cantonal level. For details about the current tax rates applied to both companies and individuals please contact our law firm in Switzerland. You can also ask for our services in other legal matters.

In ordinary offices, generally the front desk comprises of the most important staffers in a company. Most important staff members include managers and executives

The one exception to this rule is the equity research department; it doesn't directly generate revenue, but it plays such a vital role in the decision-making process that these employees must work closely with people who invest clients' money. Researchers write reports about earnings prospects and companies that could benefit from investments.

Rusca Dimitri works in for a trade finance company for more than 20 years. He has good management skills and during his free time he writes short articles on Swiss company management, and Swiss corporates.

About the Author

Rusca Dimitri works in for a trade finance company for more than 20 years. He has good management skills and during his free time he writes short articles on Trade Finance Systems, and Trade Finance services.

Rate this Article
Leave a Comment
Author Thumbnail
I Agree:
Comment 
Pictures
Author: Mr Dimitri Rusca

Mr Dimitri Rusca

Member since: Aug 10, 2016
Published articles: 61

Related Articles