Shareholders in Switzerland have a reasonable amount of control within the company they have invested in, but each investment may also feature a number of liabilities or responsibilities. As a limited liability company is one of the more popular business types in Switzerland, it is important to know that it also has a minimum required number of shareholders.
Shareholder’s rights in Switzerland
A limited liability company, or GmbH, is a type of public liability company in Switzerland and must have at least one main shareholder to be established. These required shareholders are able to be board directors or a company director. Shareholder liability is bound to the number of shares, or general amount of funds invested in the company’s capital.
Company shareholders are required to convene every year for a shareholders meeting. This meeting has to occur within the first 6 months of the businesses registration. During this meeting, the shareholders and other parties present will essentially be required to determine the composition of the directors within the board as well as dictating who has executive managerial control of the company.
Executive decisions which affect the company’s management are only permitted to take place if all shareholders are present. Although, proposals such as; performing a particular audit, choosing auditors or planning a shareholders meeting can be done without every shareholder in attendance.
Swiss corporate governance
A given voting right is presented to Switzerland-based company’s shareholders, based on the number of shares a holder has. Normally, one vote is presented with one share. Although, a company’s specific articles of association may outline different requirements for shareholders depending on the organisation or business.
When opening a company in Switzerland, investors must observe Swiss company law which governs the management of the company, and also it’s taxation.
If you require more information or assistance in setting up a Swiss company, registering it or have some questions, feel free to contact our Swiss-based consultants who are based in Zurich.