Convocation and Holding of a Board Meeting of a Swiss Company

The Board of Directors of a Swiss company is the central body for strategic decision-making and overseeing the company. The convocation and holding of meetings of this board are crucial for the proper functioning and governance of the company. In this context, let's take a closer look at the essential aspects related to the convocation, holding of Board meetings, and the powers of the directors and the Chairman of the Board.

Convocation and Holding of a Board Meeting of a Swiss Company

Convocation of Board Meetings

The convocation of Board meetings is generally carried out by the Chairman of the Board or another designated member, in accordance with the company’s bylaws. It must be done in compliance with the deadlines and procedures specified by Swiss law and the company’s bylaws. The convocation is usually sent in writing, specifying the date, time, location of the meeting, and the agenda.

According to Swiss law, the Board of Directors must meet at least once a year. However, the frequency of meetings can be increased according to the needs of the company and the provisions of the bylaws.

Conducting Meetings and Powers of Directors

During the Board of Directors meeting, the directors have clearly defined responsibilities and powers. Each director has a duty to actively participate in deliberations and make decisions in the interest of the company and its shareholders.

Decisions are made based on the majority of votes of the directors present, unless otherwise stated in the bylaws. In case of a tie in votes, the Chairman of the Board generally has a casting vote to break the tie.

Power of the Chairman of the Board

The Chairman of the Board plays a crucial role in conducting the meetings. They are responsible for leading and overseeing the discussions, ensuring that the agenda is followed, and decisions are made in accordance with the bylaws and applicable laws. Additionally, they have the power to convene extraordinary meetings if necessary, in consultation with the board members and in accordance with statutory provisions.

It’s important to note that the Chairman of the Board has a casting vote in case of a tie in votes. Their role is to facilitate discussion and ensure the smooth progress of the meeting while allowing directors to exercise independent judgment and make decisions in the interest of the company.

The convocation and holding of Board meetings of a Swiss company are governed by specific rules and procedures. Directors, including the Chairman of the Board, have clearly defined responsibilities to ensure the smooth functioning of the company and strategic decision-making in the interest of all stakeholders.

Board of Directors’ Responsibilities

The Board of Directors of a company plays a crucial role in the governance and strategic management of the company. Its competencies and duties are diverse and essential to ensure the proper functioning and sustainable development of the company. Here is an overview of the main competencies and duties of the Board of Directors:

Defining the company’s strategy and objectives

The Board of Directors is responsible for defining the company’s vision, mission, and overall strategy. It must ensure that the set objectives are in line with the company’s mission and are able to create value for shareholders and stakeholders.

Appointing and supervising the executive management

The Board of Directors is responsible for the appointment of the executive management, such as the Chief Executive Officer (CEO) and members of the executive committee. It also supervises their performance and ensures that the executive management acts in the best interest of the company.

Monitoring the management and operations of the company

It is the responsibility of the Board of Directors to monitor and evaluate the company’s activities, associated risks, and financial performance. It must ensure that operations are conducted in accordance with laws, ethical standards, and established policies.

Ensuring compliance and social responsibility

The Board of Directors must ensure that the company complies with applicable laws, regulations, and standards. It must also consider the social responsibility aspects of the company by integrating ethical, sustainable, and socially responsible practices.

Making major and strategic decisions

The Board of Directors is responsible for making major decisions that can have a significant impact on the company, such as mergers, acquisitions, major investments, restructurings, etc. These decisions must be made considering the interests of all stakeholders.

Ensuring communication and transparency

It is the duty of the Board of Directors to maintain transparent communication with shareholders, employees, and other stakeholders. This includes communication about the company’s financial performance, risks, and strategic initiatives.

Managing conflicts of interest

The Board of Directors must manage potential conflicts of interest appropriately, ensuring that decisions made are in the best interest of the company and its shareholders.

Assessing its own performance and continuous improvement The Board of Directors must regularly assess its own performance, collective and individual effectiveness, and take measures to improve its functioning.

The Board of Directors is a fundamental pillar of a company’s governance, responsible for making strategic decisions, overseeing the executive management, and ensuring legal compliance and social responsibility of the company. Its role is fundamental in ensuring the sustainability and sustainable growth of the company.

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