Coffee & Consulting: Your To Dos for members of the board of directors
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<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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<strong>C<strong>of</strong>fee</strong> & <strong>Consulting</strong>:<br />
<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong>
Board <strong>of</strong> <strong>directors</strong> in Switzerland<br />
The typical Board <strong>of</strong> Directors in Switzerland...<br />
…in a small company…<br />
• Are male (~80%)<br />
• Over 50<br />
• Has 2-4 meetings per year<br />
• Receives between 10K and 40K compensation<br />
…in a listed company…<br />
• Are male (~87%)<br />
• 59 years old<br />
• Has 7-8 meetings per year<br />
• Receives between 160K and 300K compensation<br />
Source: vr-wissen.ch<br />
There were approximately<br />
121,000 public companies<br />
in Switzerland in 2019 and<br />
approximately 302,500 BoD<br />
positions.<br />
Status: 25.11.2021<br />
<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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Switzerland: labor law and permit law<br />
Labor law<br />
• From a legal point <strong>of</strong> view, a VR mandate is directly linked to a natural person<br />
• A legal entity cannot be entered in <strong>the</strong> commercial register as a BoD.<br />
• According to <strong>the</strong> law, <strong>the</strong> BoD <strong>of</strong> an AG must consist <strong>of</strong> at least one natural<br />
person who is authorized to represent <strong>the</strong> company (Art. 707 and 728 CO)<br />
• BoDs are regarded as corporate bodies and not as employees <strong>of</strong> <strong>the</strong><br />
company. They do not have an employment contract and are not subject to<br />
labor law.<br />
The <strong>board</strong> <strong>of</strong> <strong>directors</strong> is <strong>the</strong><br />
supreme supervisory and<br />
structuring body <strong>of</strong> <strong>the</strong><br />
corporation. According to <strong>the</strong><br />
Code <strong>of</strong> Obligations (CO), <strong>the</strong><br />
<strong>board</strong> <strong>of</strong> <strong>directors</strong> manages <strong>the</strong><br />
business itself or it delegates <strong>the</strong><br />
management to third parties<br />
(which is <strong>the</strong> rule).<br />
Permit law<br />
• Natural person<br />
• Pursuit <strong>of</strong> gainful employment = subject to registration or authorization<br />
<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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Example<br />
Drinks CH AG in Zurich has two <strong>for</strong>eign <strong>board</strong> <strong>members</strong>:<br />
• Peter London: He is English and works as a lawyer in France. His<br />
<strong>board</strong> fee is CHF 75,000 per year. He has to spend about 20 days a<br />
year in Switzerland.<br />
• Rolf Berlin: He is German and employed in Germany by Drinks DE<br />
AG in Berlin, which is a subsidiary <strong>of</strong> Drinks AG in Zurich. Within<br />
<strong>the</strong> scope <strong>of</strong> his employment at Drinks DE AG, he is also a<br />
member <strong>of</strong> <strong>the</strong> Board <strong>of</strong> Directors <strong>of</strong> Drinks AG. His fee amounts<br />
to CHF 75,000 per year and is paid directly to Drinks DE AG. For<br />
this purpose, he also has to be on site in Switzerland <strong>for</strong> approx.<br />
20 days per year.<br />
The <strong>board</strong> <strong>of</strong> <strong>directors</strong> is <strong>the</strong><br />
supreme supervisory and<br />
structuring body <strong>of</strong> <strong>the</strong><br />
corporation. According to <strong>the</strong><br />
Code <strong>of</strong> Obligations (CO), <strong>the</strong><br />
<strong>board</strong> <strong>of</strong> <strong>directors</strong> manages <strong>the</strong><br />
business itself or it delegates<br />
<strong>the</strong> management to third<br />
parties (which is <strong>the</strong> rule)<br />
<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
A p r i l 4 , 2 022<br />
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<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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Solution<br />
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<strong>Your</strong> "<strong>To</strong> <strong>Dos</strong>" <strong>for</strong> <strong>members</strong> <strong>of</strong> <strong>the</strong> <strong>board</strong> <strong>of</strong> <strong>directors</strong><br />
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<strong>Your</strong> Questions?<br />
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<strong>Your</strong> host<br />
Friederike V. Ruch, CEO<br />
Ms. Ruch is specialized in <strong>the</strong> field <strong>of</strong> cross-border employee assignments <strong>for</strong> more than 20 years and advises<br />
internationally operating companies and executives on issues such as tax, social security and licensing law, on<br />
payroll and compensation as well as on structuring and optimizing <strong>the</strong> assignment management. Ms. Ruch is<br />
one <strong>of</strong> <strong>the</strong> most experienced experts in Switzerland in <strong>the</strong> field <strong>of</strong> international employee assignments and is<br />
<strong>the</strong> author <strong>of</strong> various specialist publications, such as <strong>the</strong> practical handbook "Expatriates-Inpatriates /<br />
Handbuch zur Entsendung von Mitarbeitern" (580 pages).<br />
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Disclaimer<br />
The content <strong>of</strong> this presentation is <strong>for</strong> general guidance only<br />
and should by no means be used as a substitute <strong>for</strong> an<br />
individual consultation with pr<strong>of</strong>essional accounting, tax, legal<br />
or o<strong>the</strong>r competent advisers. While we have made every<br />
attempt to ensure that <strong>the</strong> in<strong>for</strong>mation delivered with this<br />
presentation has been obtained from reliable sources,<br />
CONVINUS is not responsible <strong>for</strong> any errors or omissions, or <strong>for</strong><br />
<strong>the</strong> results obtained from <strong>the</strong> use <strong>of</strong> this in<strong>for</strong>mation. The<br />
entire content <strong>of</strong> this webinar is <strong>the</strong> intellectual property <strong>of</strong><br />
CONVINUS and is under copyright. Any modification,<br />
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