The Board of Directors in Switzerland, governed by the Swiss Code of Obligations, holds key responsibilities in business management, including strategic direction and compliance with regulations. Its specific duties include rigorous financial oversight, diligent management, and vigilance regarding solvency, capital loss, and overindebtedness, ensuring the financial health and legality of businesses.
The effective governance of a company in Switzerland requires a Board of Directors (BoD) whose duties, regulated by the Swiss Code of Obligations, encompass crucial responsibilities. These inalienable duties, defined by general principles, grant the BoD exclusive powers such as overall direction of the company, establishment of an efficient organization, and the setting of strict accounting standards.
Beyond these general duties, the BoD is responsible for maintaining rigorous financial vigilance, closely monitoring solvency and compliance with prevailing regulations. Additionally, it must ensure diligent and prudent management of the company’s affairs, in accordance with Article 717 paragraph 1 of the Swiss Code of Obligations.
Furthermore, specific duties are imposed on the BoD, such as the establishment of an early warning system to assess the solvency of the company. In the event of insolvency risk, it must take remedial measures in accordance with Article 725 of the Swiss Code of Obligations. It is also obligated to monitor capital loss, and in cases of overindebtedness, its responsibility is to file for bankruptcy, except in exceptional situations provided by law.
These general and specific obligations aim to maintain the financial health and legal compliance of the company, carefully monitoring key indicators such as solvency, capital loss, and overindebtedness. Adhering to these obligations is crucial to ensure the longevity and compliance of any business.
For any consultation or to initiate the process for the appointment of a Swiss director in Switzerland, feel free to contact us now. Fill out our online form or call us at +41(0)22 566 82 45.
