agenda<\/strong>. This practice ensures that shareholders or partners have the necessary time to prepare for the decisions to be made and organize their participation.<\/p>\n\nThe agenda and the necessary documents<\/h3>\n\n The agenda<\/strong> is another fundamental element that must accompany the notice. It should clearly list all the items that will be discussed and put to a vote. The most common topics include:<\/p>\n\n\nThe approval of the accounts<\/strong> for the previous fiscal year.<\/li>\n\n\n\nThe proposals for statutory reforms<\/strong>.<\/li>\n\n\n\nThe appointment or re-election of board members<\/strong>.<\/li>\n\n\n\nChanges in share capital<\/strong>.<\/li>\n<\/ul>\n\nBeyond the agenda, shareholders or partners must receive all the necessary documents<\/strong> for an informed decision-making process, such as the financial statements<\/strong>, auditors’ reports<\/strong>, or explanatory documents related to the proposed resolutions.<\/p>\n\nQuorum and majority rules during voting<\/strong><\/h2>\n\nTo ensure the validity of decisions made during a general meeting<\/strong>, it is essential to comply with the quorum and majority rules stipulated by Swiss legislation. These rules ensure that the decisions reflect the will of the majority of shareholders or partners and are made in accordance with the legal framework.<\/p>\n\nQuorum at the general meeting<\/h3>\n\n The quorum<\/strong> refers to the minimum number of participants or represented shares that must be present for the general meeting to be validly held and deliberate. In Switzerland, the required quorum is often specified in the company’s bylaws<\/strong>, but in the absence of this, general rules apply. If the quorum is not met, the meeting cannot decide on the items on the agenda, and a new notice must be sent.<\/p>\n\nEnsuring a quorum guarantees that important decisions are not made by a minority of shareholders, but rather by a sufficient number of participants representing a large portion of the share capital.<\/p>\n\n
Majority for the adoption of resolutions<\/h3>\n\n During a general meeting<\/strong>, the resolutions submitted for a vote must obtain a majority to be adopted. The required majority<\/strong> depends on the nature of the decisions to be made. For ordinary resolutions, such as the approval of accounts<\/strong> or the appointment of directors<\/strong>, a simple majority (50% + 1) is generally sufficient. This means that the decision is validated as soon as it receives the majority of the participants’ votes.<\/p>\n\nOn the other hand, for more significant decisions, such as a modification of the statutes<\/strong>, a capital increase<\/strong>, or a merger<\/strong>, the law or the statutes may require a qualified majority<\/strong>, which can be up to two-thirds of the votes. This rule of reinforced majority aims to protect the interests of minorities and ensure that a broader consensus is reached for decisions having a significant impact on the company.<\/p>\n\nThe drafting of the minutes of the general meeting<\/h2>\n\n After each general meeting, it is imperative to draft a minutes<\/strong> document that records the discussions and decisions made during the meeting. This document holds legal value and serves as written proof of the resolutions adopted. It is crucial for the traceability of decisions and for the company’s compliance with Swiss laws.<\/p>\n\nMinutes content<\/h3>\n\n The minutes<\/strong> must contain several essential elements to ensure their completeness and legal compliance. They must include:<\/p>\n\n\nThe date<\/strong>, time<\/strong>, and location<\/strong> of the general meeting.<\/li>\n\n\n\nThe names of the participants<\/strong> and, if applicable, the representatives<\/strong> who voted on behalf of other shareholders.<\/li>\n\n\n\nA summary of the discussions<\/strong>, including the items on the agenda.<\/li>\n\n\n\nThe voting results<\/strong> for each resolution (adoption, rejection, or abstention).<\/li>\n\n\n\nThe signatures<\/strong> of the session president and the scrutineers who supervised the votes.<\/li>\n<\/ul>\n\nThe minutes must be kept in the company’s archives<\/strong> and made available to shareholders<\/strong> or partners<\/strong> who wish to review them. This transparency is a guarantee of trust and good governance, ensuring that every decision is made in accordance with the principles of transparency and fairness.<\/p>\n\nDrafting the minutes is a crucial step to ensure the legality of the decisions made during the meeting and their recognition by the Swiss authorities.<\/p>\n\n
Sanctions for Non-Compliance with Legal Obligations<\/strong><\/h2>\n\nFailure to comply with the legal obligations related to general meetings<\/strong> in Switzerland can lead to serious consequences for companies and their executives. It is therefore crucial to strictly adhere to the procedures to ensure the validity of decisions and avoid legal or financial penalties.<\/p>\n\nNullity of decisions<\/h3>\n\n One of the main penalties for failing to comply with legal obligations<\/strong> is the nullification of decisions made during the meeting. If the general meeting was not convened according to established rules, or if the required quorum<\/strong> and majorities<\/strong> by law or statutes were not met, the decisions adopted may be considered null and void. This situation can lead to legal instability for the company, as important decisions, such as the approval of accounts or the appointment of directors, could be annulled. Consequently, the company may need to organize a new meeting to re-vote on these decisions, resulting in additional costs and delays in managing ongoing business affairs.<\/p>\n\nThe nullity of decisions<\/strong> can also weaken the company’s credibility with its partners, investors, and shareholders, thereby compromising trust in the company’s governance.<\/p>\n\nResponsibility of leaders<\/h3>\n\n The leaders<\/strong> of a company, particularly the members of the board of directors<\/strong>, are responsible for the proper organization of general meetings. If these obligations are not met, the leaders can be held accountable, both financially and legally.<\/p>\n\nIn cases of serious breaches, such as failing to convene shareholders within the legal deadlines or manipulating voting results, financial penalties may be imposed. In more extreme cases, when the violation of legal rules causes significant harm to the shareholders<\/strong> or partners<\/strong>, the executives may even face legal action, with possible criminal consequences.<\/p>\n\nThe responsibility of leaders is a crucial point to consider, as their poor management can lead to a deterioration in the relationship with shareholders and consequences for the company’s reputation.<\/p>\n\nConclusion<\/h2>\n\n Holding a general meeting<\/strong> in Switzerland is based on strict legal obligations<\/strong> aimed at ensuring transparency and the proper functioning of companies. From the invitation<\/strong> to the drafting of the minutes<\/strong>, including adherence to the quorum<\/strong> and majorities<\/strong>, each step is regulated to protect shareholders’ rights and ensure sound and compliant governance<\/strong>.<\/p>\n\nFailure to comply with these obligations exposes the company to significant legal and financial risks, which can include the annulment of decisions made during the meeting and the questioning of the directors’ liability. It is therefore essential to fully understand these rules to avoid complications and ensure the company’s sustainability.<\/p>\n\n
<\/p>\n\n
Questions – Answers<\/strong><\/h2>\n\n\n
What are the two types of general meetings in Switzerland?<\/strong><\/strong> The two types of general meetings in Switzerland are the ordinary general meeting<\/strong> (OGM), which is held once a year to approve the accounts and elect board members, and the extraordinary general meeting<\/strong> (EGM), which can be convened at any time to address specific urgent matters.<\/p> <\/div> How long before the general meeting should the notice be sent?<\/strong><\/strong> The notice for a general meeting must generally be sent between 10 and 20 days<\/strong> before the scheduled date, to allow shareholders to prepare and review the necessary documents.<\/p> <\/div> What is the quorum at a general meeting?<\/strong><\/strong> The quorum<\/strong> refers to the minimum number of participants or represented shares required for the meeting to validly deliberate and make decisions. The quorum is often defined in the company’s bylaws.<\/p> <\/div> What documents must be provided before a general meeting?<\/strong><\/strong> Before a general meeting, shareholders must receive essential documents such as the financial statements<\/strong>, the auditors’ reports<\/strong>, and the company’s bylaws<\/strong> so they can make informed decisions.<\/p> <\/div> How are decisions made during a general meeting?<\/strong><\/strong> Decisions at a general meeting are made by vote<\/strong>. Depending on the nature of the resolutions, they are adopted by a simple majority or a qualified majority, according to statutory or legal rules.<\/p> <\/div> What happens if quorum rules are not followed?<\/strong><\/strong> If the quorum<\/strong> is not met, the assembly cannot deliberate or make decisions. It is then necessary to convene a new assembly, with a specific timeframe to ensure compliance.<\/p> <\/div> What are the consequences of a non-compliant general meeting?<\/strong><\/strong> Decisions made during a non-compliant meeting, meaning one that does not adhere to legal or statutory rules, can be annulled<\/strong>. The leaders may also be held responsible<\/strong> for the irregularities, which can lead to financial penalties.<\/p> <\/div> Is it mandatory to draft minutes after a general meeting?<\/strong><\/strong> Yes, it is mandatory to draft a minutes<\/strong> that summarizes the deliberations and decisions made during the general meeting. This document must be kept in the company’s archives.<\/p> <\/div> Who can participate in a general meeting in Switzerland?<\/strong><\/strong> Shareholders<\/strong> or their representatives<\/strong> can participate in the general meeting. Members of the board of directors<\/strong> and, in some cases, auditors or other stakeholders, may also be present.<\/p> <\/div> What are the roles of shareholders during the general meeting?<\/strong><\/strong> During a general meeting, the shareholders<\/strong> vote on important decisions concerning the company, such as the approval of accounts<\/strong>, the appointment of directors<\/strong>, the distribution of dividends<\/strong>, and other strategic resolutions.<\/p> <\/div> <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"Switzerland, with its rigorous and well-structured legal framework, imposes precise rules for business management, particularly regarding general meetings. Whether you are leading a Limited Liability Company (SARL) or a Corporation (SA), holding general meetings is a fundamental pillar for strategic decision-making and operational transparency. These meetings not only validate essential decisions but also ensure that […]<\/p>\n","protected":false},"author":11,"featured_media":37601,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67],"tags":[],"class_list":["post-37600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-and-legal-aspects"],"yoast_head":"\n
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