In their recent article in the Swiss Review of Business and Financial Market Law 05 2020, Dr. Dominik Milani and Philipp Schürch of NSF Attorneys at Law address the upcoming new provision of the Swiss Code of Obligations covering the duties of the members of the board of directors in the event of imminent insolvency.
On 19 June 2020 the Swiss parliament adopted the final text of the revised law on companies limited by shares. Aside of the pre-existing legal provisions governing the capital loss and the over-indebtedness, the revised law is implementing the event of imminent insolvency, a non-capital related condition, triggering particular duties for a company’s governing body. These duties are based on the new article 725 of the Swiss Code of Obligations and are primarily related to private restructurings. The legislator seems to give preference to private restructuring activities over the instruments of bankruptcy and liquidation proceedings relating to companies.
To read the publication, please click here.