On completion of the liquidation process, the liquidators shall apply to the commercial register office for the deletion of the business name.
Art. 746 – Deletion from the commercial register
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Art. 746
- Language
- English (en)
- Data status
- 2026-01-01
Available language versions
The official sources and versions published by the competent authorities remain authoritative.
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Contents of this enactment
Document text1
Articles1603
1Division One: General Provisions
2Title One: Creation of Obligations
3Section One: Obligations arising by Contract
4A. Conclusion of the contract
5I. Mutual expression of intent
61. In general
Art. 1Art. 1 1 The conclusion of a contract requires a mutual expression of intent by the parties. 2 The expression of intent may be express or implied.
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62. Secondary terms
Art. 2Art. 2 1 Where the parties have agreed on all the essential terms, it is presumed that the contract will be binding notwithstanding any reservation on secondary terms. 2 In the event of failure to reach agreement on suc…
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5II. Offer and acceptance
61. Offer subject to time limit
Art. 3Art. 3 1 A person who offers to enter into a contract with another person and sets a time limit for acceptance is bound by his offer until the time limit expires. 2 He is no longer bound if no acceptance has reached him…
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62. Offer without time limit
7a. In the parties’ presence
Art. 4Art. 4 1 Where an offer is made in the offeree’s presence and no time limit for acceptance is set, it is no longer binding on the offeror unless the offeree accepts it immediately. 2 Contracts concluded by telephone are…
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7b. In the parties’ absence
Art. 5Art. 5 1 Where an offer is made in the offeree’s absence and no time limit for acceptance is set, it remains binding on the offeror until such time as he might expect a reply sent duly and promptly to reach him. 2 He ma…
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63. Implied acceptance
Art. 6Art. 6 Where the particular nature of the transaction or the circumstances are such that express acceptance cannot reasonably be expected, the contract is deemed to have been concluded if the offer is not rejected withi…
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63a. Unsolicited goods
Art. 6aArt. 6a Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). 1 The s…
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64. Non-binding offer, announcement of prices, display
Art. 7Art. 7 1 An offeror is not bound by his offer if he has made express declaration to that effect or such a reservation arises from the circumstances or from the particular nature of the transaction. 2 The sending of tari…
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65. Publicly promised remuneration
Art. 8Art. 8 1 A person who publicly promises remuneration or a reward in exchange for the performance of an act must pay in accordance with his promise. 2 If he withdraws his promise before performance has been made, he must…
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66. Withdrawal of offer and acceptance
Art. 9Art. 9 1 An offer is deemed not to have been made if its withdrawal reaches the offeree before or at the same time as the offer itself or, where it arrives subsequently, if it is communicated to the offeree before he be…
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5III. Entry into effect of a contract concluded in the parties’ absence
Art. 10Art. 10 1 A contract concluded in the parties’ absence takes effect from the time acceptance is sent. 2 Where express acceptance is not required, the contract takes effect from the time the offer is received.
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4B. Form of contracts
5I. Formal requirements and significance in general
Art. 11Art. 11 1 The validity of a contract is not subject to compliance with any particular form unless a particular form is prescribed by law. 2 In the absence of any provision to the contrary on the significance and effect…
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5II. Written form
61. Form required by law
7a. Scope
Art. 12Art. 12 Where the law requires that a contract be done in writing, the requirement also applies to any amendment to the contract with the exception of supplementary collateral clauses that do not conflict with the origi…
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7b. Effect
Art. 13Art. 13 1 A contract required by law to be done in writing must be signed by all persons on whom it imposes obligations. 2 ... Repealed by Annex No 2 to the FA of 19 Dec. 2003 on Electronic Signatures, with effect from…
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7c. Signature
Art. 14Art. 14 1 Signatures must be appended by hand by the parties to the contract. 2 A signature reproduced by mechanical means is recognised as sufficient only where such reproduction is customarily permitted, and in partic…
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7d. Mark in lieu of signature
Art. 15Art. 15 Subject to the provisions relating to bills of exchange, any person unable to sign may make a duly certified mark by hand or give a certified declaration in lieu of a signature.
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62. Form stipulated by contract
Art. 16Art. 16 1 Where the parties agree to make a contract subject to formal requirements not prescribed by law, it is presumed that the parties do not wish to assume obligations until such time as those requirements are sati…
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4C. Cause of obligation
Art. 17Art. 17 An acknowledgment of debt is valid even if it does not state the cause of the obligation.
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4D. Interpretation of contracts, simulation
Art. 18Art. 18 1 When assessing the form and terms of a contract, the true and common intention of the parties must be ascertained without dwelling on any inexact expressions or designations they may have used either in error…
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4E. Terms of the contract
5I. Definition of terms
Art. 19Art. 19 1 The terms of a contract may be freely determined within the limits of the law. 2 Clauses that deviate from those prescribed by law are admissible only where the law does not prescribe mandatory forms of wordin…
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5II. Nullity
Art. 20Art. 20 1 A contract is void if its terms are impossible, unlawful or immoral. 2 However, where the defect pertains only to certain terms of a contract, those terms alone are void unless there is cause to assume that th…
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5III. Unfair advantage
Art. 21Art. 21 1 Where there is a clear discrepancy between performance and consideration under a contract concluded as a result of one party’s exploitation of the other’s straitened circumstances, inexperience or thoughtlessn…
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5IV. Agreement to conclude a contract
Art. 22Art. 22 1 Parties may reach a binding agreement to enter into a contract at a later date. 2 Where in the interests of the parties the law makes the validity of a contract conditional on observance of a particular form,…
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4F. Defect in consent
5I. Error
61. Effect
Art. 23Art. 23 A party labouring under a fundamental error when entering into a contract is not bound by that contract.
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62. Cases of mistake
Art. 24Art. 24 1 An error is fundamental in the following cases in particular: 1. where the party acting in error intended to conclude a contract different from that to which he consented; 2. where the party acting in error ha…
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63. Invoking error contrary to good faith
Art. 25Art. 25 1 A person may not invoke error in a manner contrary to good faith. 2 In particular, the party acting in error remains bound by the contract he intended to conclude, provided the other party accepts that contrac…
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64. Error by negligence
Art. 26Art. 26 1 A party acting in error and invoking that error to repudiate a contract is liable for any damage arising from the nullity of the agreement where the error is attributable to his own negligence, unless the othe…
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65. Incorrect intermediation
Art. 27Art. 27 Where an offer to enter into a contract or the acceptance of that offer has been incorrectly communicated by a messenger or other intermediary, the provisions governing error apply mutatis mutandis.
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5II. Fraud
Art. 28Art. 28 1 A party induced to enter into a contract by the fraud of the other party is not bound by it even if his error is not fundamental. 2 A party who is the victim of fraud by a third party remains bound by the cont…
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5III. Duress
61. Consent to contract
Art. 29Art. 29 1 Where a party has entered into a contract under duress from the other party or a third party, he is not bound by that contract. 2 Where the duress originates from a third party and the other party neither knew…
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62. Definition of duress
Art. 30Art. 30 1 A party is under duress if, in the circumstances, he has good cause to believe that there is imminent and substantial risk to his own life, limb, reputation or property or to those of a person close to him. 2…
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5IV. Defect of consent negated by ratification of the contract
Art. 31Art. 31 1 Where the party acting under error, fraud or duress neither declares to the other party that he intends not to honour the contract nor seeks restitution for the performance made within one year, the contract i…
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4G. Agency
5I. With authorisation
61. In general
7a. Effect of agency
Art. 32Art. 32 1 The rights and obligations arising from a contract made by an agent in the name of another person accrue to the person represented, and not to the agent. 2 Where the agent did not make himself known as such wh…
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7b. Scope of authority
Art. 33Art. 33 1 Where authority to act on behalf of another stems from relationships established under public law, it is governed by the public law provisions of the Confederation or the cantons. 2 Where such authority is con…
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62. Authority arising from a transaction
7a. Restriction and revocation
Art. 34Art. 34 1 A principal authorising another to act on his behalf by means of a transaction may restrict or revoke such authority at any time without prejudice to any rights acquired by those involved under existing legal…
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7b. Effect of death, incapacity, etc.
Art. 35Art. 35 1 The authority conferred by means of a transaction is extinguished on the loss of capacity to act, bankruptcy, death, or declaration of presumed death of the principal or the agent, unless the contrary has been…
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7c. Return of the instrument conferring authority
Art. 36Art. 36 1 Where an agent has been issued with an instrument setting out his authority, he must return it or deposit it with the court when that authority has ended. 2 Where the principal or his legal successors have omi…
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7d. Time from which end of authority takes effect
Art. 37Art. 37 1 Until such time as an agent becomes aware that his authority has ended, his actions continue to give rise to rights and obligations on the part of the principal or the latter’s legal successors as if the agent…
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5II. Without authority
61. Ratification
Art. 38Art. 38 1 Where a person without authority enters into a contract on behalf of a third party, rights and obligations do not accrue to the latter unless he ratifies the contract. 2 The other party has the right to reques…
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62. Failure to ratify
Art. 39Art. 39 1 Where ratification is expressly or implicitly refused, action may be brought against the person who acted as agent for compensation in respect of any damage caused by the extinction of the contract unless he c…
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5III. Reservation of special provisions
Art. 40Art. 40 The special provisions governing the authority of agents and governing bodies of companies and partnerships and of registered and other authorised agents are unaffected.
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4H. Revocation in door-to-door sales and similar contracts
5I. Scope of application
Art. 40aArt. 40a Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). 1 The…
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5II. General principle
Art. 40bArt. 40b Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). A cust…
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5III. Exceptions
Art. 40cArt. 40c Inserted by No I of the FA of 5 Oct. 1990 (AS 1991 846; BBl 1986 II 354). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 (AS 1993 3120; BBl 1993 I 757). Inserted by No I of the FA of 5 Oc…
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5IV. Duty to inform
Art. 40dArt. 40d Inserted by No I of the FA of 5 Oct. 1990 (AS 1991 846; BBl 1986 II 354). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 (AS 1993 3120; BBl 1993 I 757). Inserted by No I of the FA of 5 Oc…
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5V. Revocation
61. Form and time limit
Art. 40eArt. 40e Inserted by No I of the FA of 5 Oct. 1990 (AS 1991 846; BBl 1986 II 354). Amended by No I of the FA of 18 June 1993, in force since 1 Jan. 1994 (AS 1993 3120; BBl 1993 I 757). Inserted by No I of the FA of 5 Oc…
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62. Consequences
Art. 40fArt. 40f Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). Inserted by No I of the FA of 5 Oct. 1990, in force since 1 July 1991 (AS 1991 846; BBl 1986 II 354). 1 Wher…
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Art. 40gArt. 40g Inserted by No I of the FA of 5 Oct. 1990 (AS 1991 846; BBl 1986 II 354). Repealed by Annex No 5 to the Civil Jurisdiction Act of 24 March 2000, with effect from 1 Jan. 2001 (AS 2000 2355; BBl 1999 III 2829). I…
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3Section Two: Obligations in Tort
4A. General principles
5I. Conditions of liability
Art. 41Art. 41 1 Any person who unlawfully causes damage to another, whether wilfully or negligently, is obliged to provide compensation. 2 A person who wilfully causes damage to another in an immoral manner is likewise oblige…
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5II. Determining the damage
Art. 42Art. 42 1 A person claiming damages must prove that damage occurred. 2 Where the exact value of the damage cannot be quantified, the court shall estimate the value at its discretion in the light of the normal course of…
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5III. Determining compensation
Art. 43Art. 43 1 The court determines the form and extent of the compensation provided for damage incurred, with due regard to the circumstances and the degree of culpability. 1bis Where an animal kept as a pet rather than for…
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5IV. Grounds for reducing compensation
Art. 44Art. 44 1 Where the person suffering damage consented to the harmful act or circumstances attributable to him helped give rise to or compound the damage or otherwise exacerbated the position of the party liable for it,…
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5V. Special cases
61. Homicide and personal injury
7a. Damages for homicide
Art. 45Art. 45 1 In a case of homicide, compensation must cover all expenses arising and in particular the funeral costs. 2 Where death did not occur immediately, the compensation must also include the costs of medical treatme…
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7b. Damages for personal injury
Art. 46Art. 46 1 In the event of personal injury, the victim is entitled to reimbursement of expenses incurred and to compensation for any total or partial inability to work and for any loss of future earnings. 2 Where the con…
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7c. Satisfaction
Art. 47Art. 47 In cases of homicide or personal injury, the court may award the victim of personal injury or the dependants of the deceased an appropriate sum by way of satisfaction.
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62. ...
Art. 48Art. 48 Repealed by Art. 21 para. 1 of the FA of 30 Sept. 1943 on Unfair Competition, with effect from 1 March 1945 (BS 2 951). Repealed by Art. 21 para. 1 of the FA of 30 Sept. 1943 on Unfair Competition, with effect f…
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63. Injury to personality rights
Art. 49Art. 49 Amended by No II 1 of the FA of 16 Dec. 1983, in force since 1 July 1985 (AS 1984 778; BBl 1982 II 661). Amended by No II 1 of the FA of 16 Dec. 1983, in force since 1 July 1985 (AS 1984 778; BBl 1982 II 661). 1…
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5VI. Multiple liable parties
61. In tort
Art. 50Art. 50 1 Where two or more persons have together caused damage, whether as instigator, perpetrator or accomplice, they are jointly and severally liable to the person suffering damage. 2 The court determines at its disc…
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62. On different legal grounds
Art. 51Art. 51 1 Where two or more persons are liable for the same damage on different legal grounds, whether under tort law, contract law or by statute, the provision governing recourse among persons who have jointly caused d…
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5VII. Self-defence, necessity, legitimate use of force
Art. 52Art. 52 1 Where a person has acted in self-defence, he is not liable to pay compensation for damage caused to the person or property of the aggressor. 2 A person who damages the property of another in order to protect h…
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5VIII. Relationship with criminal law
Art. 53Art. 53 1 When determining fault or lack of fault and capacity or incapacity to consent, the court is not bound by the provisions governing criminal capacity nor by any acquittal in the criminal court. 2 The civil court…
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4B. Liability of persons lacking capacity to consent
Art. 54Art. 54 1 On grounds of equity, the court may also order a person who lacks capacity to consent to provide total or partial compensation for the damage he has caused. 2 A person who has temporarily lost his capacity to…
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4C. Liability of employers
Art. 55Art. 55 1 An employer is liable for the damage caused by his employees or ancillary staff in the performance of their work unless he proves that he took all due care to avoid a damage of this type or that the damage wou…
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4D. Liability for animals
5I. Damages
Art. 56Art. 56 1 In the event of damage caused by an animal, its keeper is liable unless he proves that in keeping and supervising the animal he took all due care or that the damage would have occurred even if all due care had…
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5II. Seizure of animals
Art. 57Art. 57 1 A person in possession of a plot of land is entitled to seize animals belonging to another which cause damage on that land and take them into his custody as security for his claim for compensation or even to k…
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4E. Liability of property owners
5I. Damages
Art. 58Art. 58 1 The owner of a building or any other structure is liable for any damage caused by defects in its construction or design or by inadequate maintenance. 2 He has a right of recourse against persons liable to him…
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5II. Safety measures
Art. 59Art. 59 1 A person who is at risk of suffering damage due to a building or structure belonging to another may insist that the owner take the necessary steps to avert the danger. 2 Orders given by the police for the prot…
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4F. Liability in respect of cryptographic keys
Art. 59aArt. 59a Inserted by Annex No 2 to the FA of 19 Dec. 2003 on Electronic Signatures (AS 2004 5085; BBl 2001 5679). Amended by Annex No II 4 of the FA of 18 March 2016 on Electronic Signatures, in force since 1 Jan. 2017…
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4G. Prescription
Art. 60Art. 60 1 The right to claim damages or satisfaction prescribes three years from the date on which the person suffering damage became aware of the loss, damage or injury and of the identity of the person liable for it b…
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4H. Liability of civil servants and public officials
Art. 61Art. 61 1 The Confederation and the cantons may by way of legislation enact provisions that deviate from those of this Section to govern the liability of civil servants and public officials to pay damages or satisfactio…
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3Section Three: Obligations deriving from Unjust Enrichment
4A. Requirement
5I. In general
Art. 62Art. 62 1 A person who has enriched himself without just cause at the expense of another is obliged to make restitution. 2 In particular, restitution is owed for money benefits obtained for no valid reason whatsoever, f…
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5II. Payment in satisfaction of a non-existent obligation
Art. 63Art. 63 1 A person who has voluntarily satisfied a non-existent debt has a right to restitution of the sum paid only if he can prove that he paid it in the erroneous belief that the debt was owed. 2 Restitution is exclu…
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4B. Scope of restitution
5I. Obligations of the unjustly enriched party
Art. 64Art. 64 There is no right of restitution where the recipient can show that he is no longer enriched at the time the claim for restitution is brought, unless he alienated the money benefits in bad faith or in the certain…
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5II. Rights in respect of expenditures
Art. 65Art. 65 1 The recipient is entitled to reimbursement of necessary and useful expenditures, although where the unjust enrichment was received in bad faith, the reimbursement of useful expenditures must not exceed the amo…
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4C. Exclusion of restitution
Art. 66Art. 66 No right to restitution exists in respect of anything given with a view to producing an unlawful or immoral outcome.
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4D. Prescription
Art. 67Art. 67 1 The right to claim restitution for unjust enrichment prescribes three years after the date on which the person suffering damage learned of his or her claim and in any event ten years after the date on which th…
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2Title Two: Effect of Obligations
3Section One: Performance of Obligations
4A. General principles
5I. Performance by the obligor in person
Art. 68Art. 68 An obligor is not obliged to discharge his obligation in person unless so required by the obligee.
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5II. Object of performance
61. Part payment
Art. 69Art. 69 1 A creditor may refuse partial payment where the total debt is established and due. 2 If the creditor wishes to accept part payment, the debtor may not refuse to settle the part of the debt that he acknowledges…
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62. Indivisible performance
Art. 70Art. 70 1 Where indivisible performance is due to several obligees, the obligor must make performance to all of them jointly, and each obligee may demand that performance be made to all of them jointly. 2 Where indivisi…
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63. Debt of generic object
Art. 71Art. 71 1 If the object owed is defined only in generic terms, the obligor may choose what object is given in repayment unless otherwise stipulated under the legal relationship. 2 However, the obligor must not offer an…
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64. Obligations involving choice of performance
Art. 72Art. 72 Where an obligation may be discharged by one of several alternative types of performance, the obligor may choose which performance to make unless otherwise stipulated under the legal relationship.
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65. Interest
Art. 73Art. 73 1 Where an obligation involves the payment of interest but the rate is not set by contract, law or custom, interest is payable at the rate of 5% per annum. 2 Public law provisions governing abusive interest char…
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4B. Place of performance
Art. 74Art. 74 1 The place of performance is determined by the intention of the parties as stated expressly or evident from the circumstances. 2 Except where otherwise stipulated, the following principles apply: 1. pecuniary d…
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4C. Time of performance
5I. Open-ended obligations
Art. 75Art. 75 Where no time of performance is stated in the contract or evident from the nature of the legal relationship, the obligation may be discharged or called in immediately.
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5II. Obligations subject to time limit
61. Monthly time limits
Art. 76Art. 76 1 A time limit expressed as the beginning or end of a month means the first or last day of the month respectively. 2 A time limit expressed as the middle of the month means the fifteenth day of that month.
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62. Other time limits
Art. 77Art. 77 1 Where an obligation must be discharged or some other transaction accomplished within a certain time limit subsequent to conclusion of the contract, the time limit is defined as follows: 1. where the time limit…
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63. Sundays and public holidays
Art. 78Art. 78 1 Where the time of performance or the last day of a time limit falls on a Sunday or on a day officially recognised as a public holiday In relation to the statutory time limits under federal law and the time lim…
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5III. Performance during business hours
Art. 79Art. 79 Performance of the obligation must be made and accepted during normal business hours on the date stipulated.
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5IV. Extension of the time limit
Art. 80Art. 80 Where the agreed time limit for performance is extended, in the absence of an agreement to the contrary, the new time limit runs from the first day following expiry of the previous time limit.
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5V. Early performance
Art. 81Art. 81 1 Unless the terms or nature of the contract or the circumstances indicate that the parties intended otherwise, performance may be rendered before the date on which the time limit expires. 2 However, the obligor…
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5VI. In bilateral contracts
61. Order of performance
Art. 82Art. 82 A party to a bilateral contract may not demand performance until he has discharged or offered to discharge his own obligation, unless the terms or nature of the contract allow him to do so at a later date.
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62. Allowance for unilateral insolvency
Art. 83Art. 83 1 Where one party to a bilateral contract has become insolvent, in particular by virtue of bankruptcy proceedings or execution without satisfaction, and this deterioration in its financial position jeopardises t…
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4D. Payment
5I. National currency
Art. 84Art. 84 Amended by Annex No 2 to the FA of 22 Dec. 1999 on Currency and Payment Instruments, in force since 1 May 2000 (AS 2002 1144; BBl 1999 7258). Amended by Annex No 2 to the FA of 22 Dec. 1999 on Currency and Payme…
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5II. Allocation
61. Of part payments
Art. 85Art. 85 1 A debtor may offset a part payment against the debt principal only if he is not in arrears with interest payments and expenses. 2 Where a creditor has received guarantees, pledges or other security for a porti…
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62. In the case of multiple debts
7a. At the discretion of debtor or creditor
Art. 86Art. 86 1 A debtor with several debts to the same creditor is entitled to state at the time of payment which debt he means to redeem. 2 In the absence of any statement from the debtor, the payment will be allocated to t…
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7b. By law
Art. 87Art. 87 1 Where no valid debt redemption statement has been made and the receipt does not indicate how the payment has been allocated, it is allocated to whichever debt is due or, if several are due, to the debt that fi…
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5III. Receipt and return of borrower’s note
61. Right of the debtor
Art. 88Art. 88 1 A debtor making a payment is entitled to demand a receipt and, provided the debt is fully redeemed, the return or annulment of the borrower’s note. 2 If the debt is not completely redeemed or the borrower’s no…
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62. Effect
Art. 89Art. 89 1 Where interest or other periodic payments are due, a creditor unreservedly issuing a receipt for a later periodic payment is presumed to have received all previous periodic payments. 2 If he issues a receipt f…
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63. Return of borrower’s note not possible
Art. 90Art. 90 1 If the creditor claims to have lost the borrower’s note, on redeeming the debt, the debtor may insist that the creditor declare by public deed or notarised document that the borrower’s note has been annulled a…
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4E. Default of obligee
5I. Requirement
Art. 91Art. 91 The obligee is in default if he refuses without good cause to accept performance properly offered to him or to carry out such preparations as he is obliged to make and without which the obligor cannot render per…
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5II. Effect
61. On obligations relating to objects
7a. Right to deposit object
Art. 92Art. 92 1 Where the obligee is in default, the obligor is entitled to deposit the object at the expense and risk of the obligee, thereby discharging his obligation. 2 The court decides which place should serve as deposi…
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7b. Right to sell
Art. 93Art. 93 1 Where the characteristics of the object or the nature of the business preclude a deposit or the object is perishable or gives rise to maintenance costs or substantial storage costs, after having given formal w…
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7c. Right to take back the object
Art. 94Art. 94 1 The obligor is entitled to take back the object deposited providing the obligee has not declared that he accepts it or providing the deposit has not had the effect of redeeming a pledge. 2 As soon as the objec…
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62. On other obligations
Art. 95Art. 95 Where the obligation does not relate to objects and the obligee is in default, the obligor may withdraw from the contract in accordance with the provisions governing default of the obligor.
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4F. Performance prevented for other reasons
Art. 96Art. 96 The obligor is entitled to deposit his performance or to withdraw from the contract, as in the case of default on the part of the obligee, where performance cannot be rendered either to the obligee or to his rep…
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3Section Two: The Consequences of Non-Performance of Obligations
4A. Failure to perform
5I. Obligor’s duty to compensate
61. In general
Art. 97Art. 97 1 An obligor who fails to discharge an obligation at all or as required must make amends for the resulting damage unless he can prove that he was not at fault. 2 The procedure for debt enforcement is governed by…
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62. Obligation to act or refrain from action
Art. 98Art. 98 1 Where the obligation is to take certain action, the obligee may without prejudice to his claims for damages obtain authority to perform the obligation at the obligor’s expense. 2 Where the obligation is to ref…
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5II. Scope of liability and compensation
61. In general
Art. 99Art. 99 1 The obligor is generally liable for any fault attributable to him. 2 The scope of such liability is determined by the particular nature of the transaction and in particular is judged more leniently where the o…
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62. Exclusion of liability
Art. 100Art. 100 1 Any agreement purporting to exclude liability for unlawful intent or gross negligence in advance is void. 2 At the discretion of the court, an advance exclusion of liability for minor negligence may be deemed…
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63. Liability for associates
Art. 101Art. 101 1 A person who delegates the performance of an obligation or the exercise of a right arising from a contractual obligation to an associate, such as a member of his household or an employee is liable to the othe…
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4B. Default of obligor
5I. Requirement
Art. 102Art. 102 1 Where an obligation is due, the obligor is in default as soon as he receives a formal reminder from the obligee. 2 Where a deadline for performance of the obligation has been set by agreement or as a result o…
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5II. Effect
61. Liability for accidental damage
Art. 103Art. 103 1 An obligor in default is liable in damages for late performance and even for accidental damage. 2 He may discharge himself from such liability by proving that his default occurred through no fault of his own…
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62. Default interest
7a. In general
Art. 104Art. 104 1 A debtor in default on payment of a pecuniary debt must pay default interest of 5% per annum even where a lower rate of interest was stipulated by contract. 2 Where the contract envisages a rate of interest h…
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7b. Debtor in default on payments of interest, annuities and gifts
Art. 105Art. 105 1 A debtor in default on payment of interest, annuities or gifts is liable for default interest only as of the day on which enforcement proceedings are initiated or legal action is brought. 2 Any agreement to t…
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63. Excess damage
Art. 106Art. 106 1 Where the value of the damage suffered by the creditor exceeds the default interest, the debtor is liable also for this additional damage unless he can prove that he is not at fault. 2 Where the additional da…
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64. Withdrawal and damages
7a. Subject to time limit
Art. 107Art. 107 1 Where the obligor under a bilateral contract is in default, the obligee is entitled to set an appropriate time limit for subsequent performance or to ask the court to set such time limit. 2 If performance has…
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7b. Without time limit
Art. 108Art. 108 No time limit need be set: 1. where it is evident from the conduct of the obligor that a time limit would serve no purpose; 2. where performance has become pointless to the obligee as a result of the obligor’s…
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7c. Effect of withdrawal
Art. 109Art. 109 1 An obligee withdrawing from a contract may refuse the promised consideration and demand the return of any performance already made. 2 In addition he may claim damages for the lapse of the contract, unless the…
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3Section Three: Obligations Involving Third Parties
4A. Subrogation
Art. 110Art. 110 A third party who satisfies the creditor is by operation of law subrogated to his rights: 1. if he redeems an object given in pledge for the debt of another and he owns said object or has a limited right in rem…
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4B. Guarantee of performance by third party
Art. 111Art. 111 A person who gives an undertaking to ensure that a third party performs an obligation is liable in damages for non-performance by said third party.
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4C. Contracts conferring rights on third parties
5I. In general
Art. 112Art. 112 1 A person who, acting in his own name, has entered into a contract whereby performance is due to a third party is entitled to compel performance for the benefit of said third party. 2 The third party or his le…
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5II. In the case of liability insurance
Art. 113Art. 113 Where an employer has taken out liability insurance and his employee has contributed at least half of the premiums, the employee has sole claim to the policy benefits.
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2Title Three: Extinction of Obligations
3A. Extinction of accessory rights
Art. 114Art. 114 1 Where a claim ceases to exist by virtue of being satisfied or in some other manner, all accessory rights such as guarantees and charges are likewise extinguished. 2 Interest that has accrued may be reclaimed…
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3B. Extinction by agreement
Art. 115Art. 115 No particular form is required for the extinction of a claim by agreement even where the obligation itself could not be assumed without satisfying certain formal requirements required by law or elected by the p…
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3C. Novation
4I. In general
Art. 116Art. 116 1 Where a new debt relationship is contracted, there is no presumption of novation in respect of an old one. 2 In particular, in the absence of agreement to the contrary, novation does not result from signature…
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4II. In relation to current accounts
Art. 117Art. 117 1 The mere posting of individual entries in a current account does not result in novation. 2 However, there is a presumption of novation if the balance on the account has been drawn and acknowledged. 3 Where sp…
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3D. Merger
Art. 118Art. 118 1 An obligation is deemed extinguished by merger where the capacities of creditor and debtor are united in the same entity. 2 In the event of de-merger, the obligation is revived. 3 The specific provisions gove…
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3E. Performance becomes impossible
Art. 119Art. 119 1 An obligation is deemed extinguished where its performance is made impossible by circumstances not attributable to the obligor. 2 In a bilateral contract, the obligor thus released is liable for the considera…
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3F. Set-off
4I. Requirement
51. In general
Art. 120Art. 120 1 Where two persons owe each other sums of money or performance of identical obligations, and provided that both claims have fallen due, each party may set off his debt against his claim. 2 The debtor may asser…
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52. Under surety
Art. 121Art. 121 A surety may refuse to satisfy the creditor to the extent that the principal debtor has a right of set-off.
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53. In contracts conferring rights on third parties
Art. 122Art. 122 A person who has undertaken an obligation in favour of a third party may not set off that obligation against his own claims against said party.
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54. Where the debtor is bankrupt
Art. 123Art. 123 1 Where the debtor is bankrupt, his creditors may set off their claims, even if they are not due, against the claims that the adjudicated bankrupt holds against them. 2 The exclusion or challenge of set-off in…
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4II. Effect of set‑off
Art. 124Art. 124 1 A set-off takes place only if the debtor notifies the creditor of his intention to exercise his right of set-off. 2 Once this has occurred, to the extent that they cancel each other out, the claim and counter…
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4III. Exceptions
Art. 125Art. 125 The following obligations may not be discharged by set-off except with the creditor’s consent: 1. obligations to restore or replace objects that have been deposited, unlawfully removed or retained in bad faith;…
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4IV. Waiver
3G. Prescription
4I. Periods
51. Ten years
Art. 127Art. 127 All claims prescribe after ten years unless otherwise provided by federal civil law.
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52. Five years
Art. 128Art. 128 The following prescribe after five years: 1. claims for agricultural and commercial rent and other rent, interest on capital and all other periodic payments; 2. claims in connection with delivery of foodstuffs,…
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52a. Twenty years
Art. 128aArt. 128a Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 (AS 2018 5343; BBl 2014 235). Inserted by No I of the FA of 15 June 2018 (Revision of the Law on Pre…
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53. Mandatory prescriptive periods
Art. 129Art. 129 The prescriptive periods laid down under this Title may not be altered by contract.
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54. Start of prescriptive period
6a. In general
Art. 130Art. 130 1 The prescriptive period commences as soon as the debt is due. 2 Where a debt falls due on notification, the prescriptive period commences on the first date on which such notice is admissible.
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6b. For periodic obligations
Art. 131Art. 131 1 In the case of life annuities and similar periodic obligations, the prescriptive period for the principal claim commences on the date on which the first instalment in arrears was due. 2 When the principal cla…
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55. Computation of prescriptive periods
Art. 132Art. 132 1 When computing prescriptive periods, the date on which the prescriptive period commences is not included and the period is not deemed to have expired until the end of its last day. 2 In other respects the pro…
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4II. Effect on accessory claims
Art. 133Art. 133 When the principal claim prescribes, so too do all claims for interest and other accessory claims.
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4III. Prevention and suspension of the prescriptive period
Art. 134Art. 134 1 The prescriptive period does not commence and, if it has begun, is suspended: 1. Amended by Annex No 1 to the FA of 20 March 2015 (Child Maintenance), in force since 1 Jan. 2017 (AS 2015 4299; BBl 2014 529).…
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4IV. Interruption of prescriptive period
51. Grounds for interruption
Art. 135Art. 135 The prescriptive period is interrupted: 1. if the debtor acknowledges the claim and in particular if he makes interest payments or part payments, gives an item in pledge or provides surety; 2. Amended by Annex…
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52. Effect of interruption on co-obligors
Art. 136Art. 136 Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 (AS 2018 5343; BBl 2014 235). Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescr…
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53. Start of new prescriptive period
6a. In the event of acknowledgment or judgment
Art. 137Art. 137 1 A new prescriptive period commences as of the date of the interruption. 2 If the claim has been acknowledged by public deed or confirmed by court judgment, the new prescriptive period is always ten years.
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6b. By action of the creditor
Art. 138Art. 138 1 Where the prescriptive period has been interrupted by an application for conciliation, or the submission of a statement of claim or defence, a new prescriptive period commences when the dispute is settled bef…
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4V. Prescription of the right of recourse
Art. 139Art. 139 Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 (AS 2018 5343; BBl 2014 235). Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescr…
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4VI. Prescription of a charge on chattels
Art. 140Art. 140 The existence of a charge on chattels does not prevent the prescription of a claim, although the fact of its prescription does not prevent the creditor from asserting his right under the charge.
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4VII. Waiver of the prescription defence
Art. 141Art. 141 1 The debtor may waive the right to object on the grounds of prescription, in each case for a maximum of ten years from the start of the prescriptive period. Amended by No I of the FA of 15 June 2018 (Revision…
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4VIII. Application
2Title Four: Special Relationships relating to Obligations
3Section One: Joint and Several Obligations
4A. Joint and several debtors
5I. Requirement
Art. 143Art. 143 1 Debtors become jointly and severally liable for a debt by stating that each of them wishes to be individually liable for performance of the entire obligation. 2 Without such a statement of intent, debtors are…
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5II. Relationship between creditor and debtor
61. Effect
7a. Liability of the debtors
Art. 144Art. 144 1 A creditor may at his discretion request partial performance of the obligation from each joint and several debtor or else full performance from any one of them. 2 All the debtors remain under the obligation u…
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7b. Objections by the debtors
Art. 145Art. 145 1 A joint and several debtor may raise against the creditor only those objections that are based either on his personal relationship with the creditor or on the nature of or collective reason for the joint and…
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7c. Action taken by individual debtors
Art. 146Art. 146 Unless otherwise provided, a joint and several debtor must not take any action which might impair the position of his fellows.
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62. Extinction of the joint and several obligation
Art. 147Art. 147 1 Where one joint and several debtor satisfies the creditor by payment or set-off, the others are discharged to that extent. 2 Where one joint and several debtor is released from liability without satisfaction…
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5III. Relationship between joint and several debtors
61. Participation
Art. 148Art. 148 1 Unless the legal relationship between the joint and several debtors indicates otherwise, each of them assumes an equal share of the payment made to the creditor. 2 A joint and several debtor who pays more tha…
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62. Subrogation
Art. 149Art. 149 1 A joint and several debtor with right of recourse against his fellow debtors is subrogated to the rights of the creditor to the extent the latter has been satisfied. 2 The creditor is liable if he favours the…
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4B. Joint and several creditors
Art. 150Art. 150 1 Multiple creditors become joint and several creditors where the debtor states that he wishes to grant each of them the right to receive full performance of the debt and in the cases prescribed by law. 2 Perfo…
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3Section Two: Conditional Obligations
4A. Condition precedent
5I. In general
Art. 151Art. 151 1 A contract is conditional if its binding nature is made dependent on the occurrence of an event that is not certain to happen. 2 The contract takes effect as soon as this condition precedent occurs, unless th…
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5II. Before the condition occurs
Art. 152Art. 152 1 Until such time as the condition precedent occurs, the conditional obligor must refrain from any act which might prevent the due performance of his obligation. 2 A conditional obligee whose rights are jeopard…
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5III. Benefits enjoyed in the interim
Art. 153Art. 153 1 A creditor into whose possession a promised object has been delivered before the condition precedent occurred may, on fulfilment of the condition precedent, keep any benefits obtained from it in the interim.…
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4B. Condition subsequent
Art. 154Art. 154 1 A contract whose termination is made dependent on the occurrence of an event that is not certain to happen lapses as soon as that condition is fulfilled. 2 As a rule, there is no retroactive effect.
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4C. Joint provisions
5I. Fulfilment of the condition
Art. 155Art. 155 If the condition consists of an act by one of the parties and that act need not be carried out in person, it may also be carried out by the party’s heirs.
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5II. Prevention in bad faith
Art. 156Art. 156 A condition is deemed fulfilled where one of the parties has prevented its fulfilment by acting in bad faith.
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5III. Inadmissible conditions
Art. 157Art. 157 Where a condition is attached with the intention of encouraging an unlawful or immoral act or omission, the conditional claim is void.
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3Section Three: Earnest Money, Forfeit Money, Salary Deductions and Contractual Penalties
4A. Earnest and forfeit money
Art. 158Art. 158 1 Earnest money paid on entering into a contract is deemed a mark of the party’s intention to honour the contract rather than a forfeit. 2 Unless otherwise stipulated by agreement or local custom, the earnest m…
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4B. ...
Art. 159Art. 159 Repealed by No II Art. 6 No 1 of the FA of 25 June 1971, with effect from 1 Jan. 1972 (AS 1971 1465; BBl 1967 II 241). See also the Final and Transitional Provisions of Title X, at the end of this Code. Repeale…
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4C. Contractual penalty
5I. Rights of the creditor
61. Relation between penalty and contractual performance
Art. 160Art. 160 1 Where a penalty is promised for non-performance or defective performance of a contract, unless otherwise agreed, the creditor may only compel performance or claim the penalty. 2 Where the penalty is promised…
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62. Relation between penalty and damage
Art. 161Art. 161 1 The penalty is payable even if the creditor has not suffered any damage. 2 Where the damage suffered exceeds the penalty amount, the creditor may claim further compensation only if he can prove that the debto…
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63. Forfeiture of part payments
Art. 162Art. 162 1 Any agreement that part payments are forfeited to the creditor in the event the contract is terminated shall be determined in accordance with the provisions governing contractual penalties. 2 ... Repealed by…
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5II. Amount, nullity and reduction of the penalty
Art. 163Art. 163 1 The parties are free to determine the amount of the contractual penalty. 2 The penalty may not be claimed where its purpose is to reinforce an unlawful or immoral undertaking or, unless otherwise agreed, wher…
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2Title Five: Assignment of Claims and Assumption of Debt
3A. Assignment of claims
4I. Requirements
51. Voluntary assignment
6a. Admissibility
Art. 164Art. 164 1 A creditor may assign a claim to which he is entitled to a third party without the debtor’s consent unless the assignment is forbidden by law or contract or prevented by the nature of the legal relationship.…
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6b. Form of the contract
Art. 165Art. 165 1 An assignment is valid only if done in writing. 2 No particular form is required for an undertaking to enter into an assignment agreement.
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52. Assignment by law or court order
Art. 166Art. 166 Where legal provisions or a court judgment require a claim to be assigned to another person, the assignment is effective towards third parties without need for any particular form or even for a statement of int…
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4II. Effect of assignment
51. Position of the debtor
6a. Payment made in good faith
Art. 167Art. 167 Where, before the assignment has been brought to his attention by the assignor or the assignee, the debtor makes payment in good faith to his former creditor or, in the case of multiple assignments, to a subseq…
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6b. Refusal of payment and deposit
Art. 168Art. 168 1 In the event of dispute as to entitlement, the debtor may refuse payment and discharge his obligation by depositing the payment with the court. 2 He makes payment at his own risk if he does so with knowledge…
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6c. Objections raised by the debtor
Art. 169Art. 169 1 Any objection that could have been made to the assignor’s claim may also be made to the assignee if it applied at the time the debtor first learned of the assignment. 2 If the debtor held a countervailing cla…
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52. Transfer of preferential and accessory rights, documents and evidence
Art. 170Art. 170 1 The assignment of a claim includes all preferential and accessory rights except those that are inseparable from the person of the assignor. 2 The assignor is bound to surrender to the assignee the legal docum…
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53. Warranty
6a. In general
Art. 171Art. 171 1 Where assignment is made for valuable consideration, the assignor warrants that the claim exists at the time of assignment. 2 However, he does not warrant that the debtor is solvent unless he has undertaken t…
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6b. In the case of assignment by way of satisfaction
Art. 172Art. 172 Where a creditor has assigned his claim in payment without fixing the amount at which the claim should be credited, the assignee need credit only the amount that he actually receives from the debtor or would ha…
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6c. Scope of liability
Art. 173Art. 173 1 The assignor is liable under warranty only for the valuable consideration received plus interest and in addition for the costs of the assignment and of any unsuccessful proceedings against the debtor. 2 Where…
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4III. Special provisions
Art. 174Art. 174 Where the law envisages special provisions governing the assignment of claims, these are unaffected.
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3B. Assumption of debt
4I. Debtor and debt acquirer
Art. 175Art. 175 1 A person who promises to answer for the debt of another assumes an obligation to release the debtor from his obligation either by satisfying the creditor or by taking the debtor’s place with the consent of th…
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4II. Contract between debt acquirer and creditor
51. Offer and acceptance
Art. 176Art. 176 1 The accession of the debt acquirer to the debt relationship in lieu of and with the release of the previous debtor is effected by means of a contract between the debt acquirer and the creditor. 2 An offer to…
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52. Lapse of offer
Art. 177Art. 177 1 The creditor may declare his acceptance at any time, but the debt acquirer and the former debtor may set the creditor a time limit for acceptance and where this expires without communication from the creditor…
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4III. Effect of change of debtor
51. Accessory rights
Art. 178Art. 178 1 The rights that are accessory to the debt remain unaffected by the change of debtor save to the extent that they are inseparable from the person of the previous debtor. 2 However, pledges and sureties provide…
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52. Objections
Art. 179Art. 179 1 Any defences arising from the debt relationship are available to the new debtor as they were to the former. 2 The new debtor may not invoke the defences personally available to the old debtor against the cred…
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4IV. Failure of debt assumption contract
Art. 180Art. 180 1 In the event of the failure of the debt assumption contract, the previous debtor’s obligation is revived with all accessory rights, subject to the rights of bona fide third parties. 2 The creditor may also cl…
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4V. Assignment of assets or a business with assets and liabilities
Art. 181Art. 181 1 A person to whom assets or a business with assets and liabilities are assigned automatically becomes liable to the creditors of the debts encumbering such assets or business on notification of the assignment…
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4VI. ...
Art. 182Art. 182 Repealed by Annex No 2 to the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2004 2617; BBl 2000 4337). Repealed by Annex No 2 to the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2…
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4VII. In relation to division of estate and land purchase
Art. 183Art. 183 The special provisions governing assumption of debt when dividing estates or disposing of pledged immovable property are unaffected.
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1Division Two: Types of Contractual Relationship
2Title Six: Sale and Exchange
3Section One: General Provisions
4A. Rights and obligations of the parties in general
Art. 184Art. 184 1 A contract of sale is a contract whereby the seller undertakes to deliver the item sold and transfer ownership of it to the buyer in return for the sale price, which the buyer undertakes to pay to the seller.…
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4B. Benefits and risks
Art. 185Art. 185 1 The benefit and risk of the object pass to the buyer on conclusion of the contract, except where otherwise agreed or dictated by special circumstance. 2 Where the object sold is defined only in generic terms,…
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4C. Reservation of cantonal law
Art. 186Art. 186 Cantonal law may limit or exclude the right to bring claims in connection with retail sales of alcoholic beverages, including hotel bills.
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3Section Two: The Chattel Sale
4A. Object
Art. 187Art. 187 1 Any sale in which the object is not land, property or a right in rem entered in the land register is a chattel sale. 2 Where constituent parts of land, such as crops, architectural salvage materials or quarry…
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4B. Seller’s obligations
5I. Transfer
61. Transfer costs
Art. 188Art. 188 Unless otherwise provided by agreement or custom, the seller bears the costs of transfer and in particular those of measuring and weighing, while the buyer bears those of documentation and receipt.
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62. Transport costs
Art. 189Art. 189 1 Unless otherwise provided by agreement or custom, if the object sold must be transported to a place other than the place of performance, the buyer bears the costs of such transport. 2 The seller is presumed t…
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63. Delivery default
7a. Withdrawal from commercial transactions
Art. 190Art. 190 1 Where in commercial transactions the contract specifies a time limit for delivery and the seller is in default, the presumption is that the buyer will forego delivery and claim damages for non-performance. 2…
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7b. Liability for and computation of damages
Art. 191Art. 191 1 A seller who fails to discharge his contractual obligation is liable for the resultant damage to the buyer. 2 The buyer in a commercial transaction is entitled to compensation of the difference between the sa…
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5II. Warranty of title
61. Warranty obligation
Art. 192Art. 192 1 The seller is obliged to transfer the purchased goods to the buyer free from any rights enforceable by third parties against the buyer that already exist at the time the contract is concluded. 2 Where on conc…
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62. Procedure
7a. Third-party notice
Art. 193Art. 193 Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 (AS 2010 1739; BBl 2006 7221). Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force…
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7b. Surrender of object without court decision
Art. 194Art. 194 1 The seller remains subject to the warranty obligation even if the buyer has in good faith acknowledged the right of a third party without waiting for a court decision or if he has agreed to submit to arbitrat…
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63. Rights of the buyer
7a. Full dispossession
Art. 195Art. 195 1 In the case of full dispossession, the contract of sale is deemed terminated and the buyer has the right to claim: 1. restitution of the price paid, with interest, less the value of any fruits the buyer has o…
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7b. Partial dispossession
Art. 196Art. 196 1 Where the buyer is dispossessed of only part of the purchased object or it is encumbered with a charge in rem for which the seller is guarantor, the buyer may not seek termination of the contract of sale but…
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7c. Objects of cultural heritage
Art. 196aArt. 196a Inserted by Art. 32 No 2 of the Cultural Property Transfer Act of 20 June 2003, in force since 1 June 2005 (AS 2005 1869; BBl 2002 535). Inserted by Art. 32 No 2 of the Cultural Property Transfer Act of 20 Jun…
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5III. Warranty of quality and fitness
61. Object of the warranty
7a. In general
Art. 197Art. 197 1 The seller is liable to the buyer for any breach of warranty of quality and for any defects that would materially or legally negate or substantially reduce the value of the object or its fitness for the desig…
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7b. In livestock trading
Art. 198Art. 198 There is no warranty obligation in sales of livestock (horses, donkeys, mules, cattle, sheep, goats or pigs) unless the seller has given express warranty in writing to the buyer or has intentionally misled the…
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62. Exclusion of warranty
Art. 199Art. 199 Any agreement to exclude or limit the warranty obligation is void if the seller has fraudulently concealed the failure to comply with warranty from the buyer.
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63. Defects known to the buyer
Art. 200Art. 200 1 The seller is not liable for defects known to the buyer at the time of purchase. 2 He is not liable for defects that any normally attentive buyer should have discovered unless he assured the buyer that they d…
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64. Notice of defects
7a. In general
Art. 201Art. 201 1 The buyer must inspect the condition of the purchased object as soon as feasible in the normal course of business and, if he discovers defects for which the seller is liable under warranty, must notify him wi…
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7b. In livestock trading
Art. 202Art. 202 1 Where in a sale of livestock a written assurance includes no time limit and does not warrant that an animal is pregnant, the seller is not liable to the buyer unless a defect is discovered and notified within…
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65. Intentional deceit
Art. 203Art. 203 Where the seller has wilfully misled the buyer, liability for breach of warranty is not limited by any failure on the buyer’s part to give prompt notice of defects.
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66. Remote sale and purchase
Art. 204Art. 204 1 A buyer who complains that an object sent from another place is defective is obliged to place it in temporary storage, provided the seller has no representative in the place in which it was received, and cann…
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67. Types of action
7a. Rescission or reduction
Art. 205Art. 205 1 In claims for breach of warranty of quality and fitness, the buyer may sue either to rescind the contract of sale for breach of warranty or to have the sale price reduced by way of compensation for the decrea…
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7b. Substitute performance
Art. 206Art. 206 1 Where the contract of sale is for delivery of a specified quantity of fungibles, the buyer may choose to bring action either for rescission or for a reduction in the sale price or to request other acceptable…
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7c. Rescission when the object is destroyed
Art. 207Art. 207 1 Action for rescission of the contract of sale may be brought if the object has been destroyed as a result of its defects or by accident. 2 In such cases the buyer must return only that which remains of the ob…
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68. Rescission of the contract of sale
7a. In general
Art. 208Art. 208 1 In the event of rescission of the contract of sale the buyer must return the object to the seller together with any benefits derived from it in the interim. 2 The seller must reimburse to the buyer the sale p…
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7b. For sales of batches or sets of objects
Art. 209Art. 209 1 Where the sale involves a batch or set of objects of which only some are defective, action for rescission may be brought only in respect of the defective items. 2 However, where the defective items cannot be…
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69. Prescription
Art. 210Art. 210 Amended by No I of the FA of 16 March 2012 (Prescription of Guarantee Claims. Extension and Coordination), in force since 1 Jan. 2013 (AS 2012 5415; BBl 2011 2889 3903). Amended by No I of the FA of 16 March 20…
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4C. Obligations of the buyer
5I. Payment of the sale price and acceptance of the object
Art. 211Art. 211 1 The buyer has an obligation to pay the price in accordance with the terms of the contract and to accept the sale object provided it is offered to him by the seller as contractually agreed. 2 Unless otherwise…
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5II. Fixing the price
Art. 212Art. 212 1 Where the buyer places a firm order without indicating the sale price, the price is presumed to be the average current market price at the place of performance. 2 Where the price is based on the weight of the…
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5III. Time when price falls due, interest
Art. 213Art. 213 1 The price falls due as soon as the property passes into the buyer’s possession, unless some other juncture is agreed. 2 Regardless of the provision governing default on expiry of a specified time limit, inter…
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5IV. Buyer in default
61. Seller’s right of withdrawal
Art. 214Art. 214 1 Where the property is to be delivered against advance payment of the price in full or in instalments and the buyer is in default on such payment, the seller is entitled to withdraw from the contract without f…
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62. Liability for and computation of damages
Art. 215Art. 215 1 Where the buyer in a commercial transaction fails to discharge his payment obligation, the seller is entitled to compensation for the difference between the sale price and the price at which he has subsequent…
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3Section Three: The Sale of Immovable Property
4A. Formal requirements
Art. 216Art. 216 1 A contract for the sale of immovable property is valid only if done as a public deed. 2 A preliminary contract and an agreement conferring a right of pre-emption, purchase or repurchase in relation to immovab…
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4Abis. Duration and priority notice
Art. 216aArt. 216a Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889). Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889).…
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4Ater. Inheritance and assignment
Art. 216bArt. 216b Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889). Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889).…
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4Aquater. Rights of pre-emption
5I. Pre-emption events
Art. 216cArt. 216c Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889). Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889).…
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5II. Effect of pre-emption, conditions
Art. 216dArt. 216d Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889). Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889).…
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5III. Exercise, forfeiture
Art. 216eArt. 216e Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889). Inserted by No II of the FA of 4 Oct. 1991, in force since 1 Jan. 1994 (AS 1993 1404; BBl 1988 III 889).…
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4B. Conditional purchase and reservation of ownership
Art. 217Art. 217 1 Conditional purchases of immovable property are not entered in the land register until the condition has been fulfilled. 2 A reservation of ownership may not be entered in the land register.
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4C. Agricultural properties
Art. 218Art. 218 Amended by Art. 92 No 2 of the FA of 4 Oct. 1991 on Rural Land Rights, in force since 1 Jan. 1994 (AS 1993 1410; BBl 1988 III 953). Amended by Art. 92 No 2 of the FA of 4 Oct. 1991 on Rural Land Rights, in forc…
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4D. Warranty
5I. For size
Art. 219Art. 219 1 Unless otherwise agreed, the seller of a property must compensate the buyer if it is not of the size indicated in the contract of sale. 2 Where the property is not of the size entered in the land register bas…
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5II. Reporting defects, rectification free of charge and prescription
Art. 219aArt. 219a Inserted by No I of the FA of 20 Dec. 2024 (Construction Defects), in force since 1 Jan. 2026 (AS 2025 270; BBl 2022 2743). Inserted by No I of the FA of 20 Dec. 2024 (Construction Defects), in force since 1 J…
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4E. Benefits and risks
Art. 220Art. 220 Where the agreement stipulates a date on which the buyer is to take possession of the property, the presumption is that the associated benefits and risks do not pass to the buyer until that date.
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4F. Reference to chattel sale
Art. 221Art. 221 In other respects, the provisions governing chattel sale apply mutatis mutandis to the sale and purchase of immovable property.
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3Section Four: Special Types of Sale
4A. Sale by sample
Art. 222Art. 222 1 In a sale by sample, the person to whom the sample was entrusted is not obliged to prove that the sample he presented is identical with the one received; his personal assurance to the court is sufficient, eve…
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4B. Sale on approval or inspection
5I. Effect
Art. 223Art. 223 1 In a sale on approval or inspection, the buyer is free to accept or refuse the object. 2 Until it is accepted, the seller remains its owner even if it has passed into the buyer’s possession.
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5II. Inspection on the seller’s premises
Art. 224Art. 224 1 Where the object is to be inspected on the premises of the seller, he is released from his obligation if the buyer fails to accept the object within the agreed or customary time limit. 2 In the absence of any…
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5III. Inspection on the buyer’s premises
Art. 225Art. 225 1 Where the object has been delivered to the buyer prior to inspection, the sale is deemed to have been approved if the buyer neither declares that he rejects the object nor returns it within the agreed or cust…
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Art. 226Art. 226 Repealed by No I of the FA of 23 March 1962, with effect from 1 Jan. 1963 (AS 1962 1047; BBl 1960 I 523). Repealed by No I of the FA of 23 March 1962, with effect from 1 Jan. 1963 (AS 1962 1047; BBl 1960 I 523).
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4C. ...
Art. 226a–226dArt. 226a–226d Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by Annex 2 No II 1 to the FA of 23 March 2001 on Consumer Credit, with effect from 1 Jan. 2003 (AS 2002 3846; BBl 1999…
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Art. 226eArt. 226e Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by No I of the FA of 14 Dec. 1990, with effect from 1 July 1991 (AS 1991 974; BBl 1989 III 1233, 1990 I 120). Inserted by No…
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Art. 226f–226kArt. 226f–226k Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by Annex 2 No II 1 to the FA of 23 March 2001 on Consumer Credit, with effect from 1 Jan. 2003 (AS 2002 3846; BBl 1999…
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Art. 226lArt. 226l Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by Annex No 5 to the Civil Jurisdiction Act of 24 March 2000, with effect from 1 Jan. 2001 (AS 2000 2355; BBl 1999 III 2829)…
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Art. 226mArt. 226m Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by Annex 2 No II 1 to the FA of 23 March 2001 on Consumer Credit, with effect from 1 Jan. 2003 (AS 2002 3846; BBl 1999 III 3…
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Art. 227Art. 227 Repealed by No I of the FA of 23 March 1962, with effect from 1 Jan. 1963 (AS 1962 1047; BBl 1960 I 523). Repealed by No I of the FA of 23 March 1962, with effect from 1 Jan. 1963 (AS 1962 1047; BBl 1960 I 523).
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Art. 227a–227iArt. 227a–227i Inserted by No I of the FA of 23 March 1962 (AS 1962 1047; BBl 1960 I 523). Repealed by No I of the FA of 13 Dec. 2013 (Repeal of the Provisions on Advance Payment Agreements), with effect from 1 July 201…
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Art. 228Art. 228 Repealed by No I of the FA of 13 Dec. 2013 (Repeal of the Provisions on Advance Payment Agreements), with effect from 1 July 2014 (AS 2014 869; BBl 2013 4631 5793). Repealed by No I of the FA of 13 Dec. 2013 (R…
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4D. Auctions
5I. Conclusion of the purchase
Art. 229Art. 229 1 At a compulsory auction, a contract of sale is concluded when the official auctioneer knocks the object down to the highest bidder. 2 In the case of a voluntary auction that has been publicly announced and is…
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5II. Avoidance
Art. 230Art. 230 1 Any interested party may within ten days bring a claim for avoidance in respect of an auction whose outcome has been influenced by unlawful or immoral means. 2 In the case of a compulsory auction, the avoidan…
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5III. Binding nature of bids at auction
61. In general
Art. 231Art. 231 1 A bidder is bound by his offer according to the auction terms and conditions. 2 Unless these provide otherwise, he is released from his obligation if a higher bid is made or if his own bid is not accepted imm…
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62. Immovable property
Art. 232Art. 232 1 In the case immovable property, the highest bid must be accepted or refused at the auction itself. 2 Any condition whereby the bidder is bound to maintain his bid after the auction is void, other than in the…
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5IV. Cash payment
Art. 233Art. 233 1 The successful bidder must pay in cash unless the auction terms and conditions provide otherwise. 2 The seller may immediately withdraw from the transaction if payment is not tendered in cash or in accordance…
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5V. Warranty
Art. 234Art. 234 1 Sale at compulsory auction is without warranty, apart from special assurances given or where the bidders are intentionally deceived. 2 The successful bidder acquires the object in the condition and with the a…
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5VI. Transfer of ownership
Art. 235Art. 235 1 The successful bidder for a chattel acquires title to it as soon as it is knocked down to him, whereas ownership of immovable property is not transferred until the entry is made in the land register. 2 The of…
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5VII. Cantonal provisions
Art. 236Art. 236 The cantons may enact other provisions governing sale at public auction within the bounds of federal law.
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3Section Five: The Contract of Exchange
4A. Reference to provisions governing purchase
Art. 237Art. 237 The rules governing contracts of sale also apply to contracts of exchange in the sense that each party to the exchange is treated as seller in respect of the object promised by him and as buyer in respect of th…
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4B. Warranty
Art. 238Art. 238 A party to the exchange who is dispossessed of the object received or has returned it as defective may either claim for damages or for the return of the object that he delivered.
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2Title Seven: The Gift
3A. Definition
Art. 239Art. 239 1 A gift is any inter vivos disposition in which a person uses his assets to enrich another without receiving an equivalent consideration. 2 Waiving a right before having acquired it or renouncing an inheritanc…
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3B. Personal capacity
4I. Of the donor
Art. 240Art. 240 1 A person with capacity to act may make gifts of his assets within the bounds imposed by matrimonial property law and inheritance law. 2 The assets of a person who lacks capacity to act may be used only to mak…
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4II. Of the recipient
Art. 241Art. 241 1 A person who lacks capacity to act may accept and legally acquire title to a gift provided he has capacity to consent. 2 However, the gift is not acquired or is annulled where his legal representative forbids…
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3C. Establishing the gift
4I. From hand to hand
Art. 242Art. 242 1 A gift from hand to hand is made when the donor presents the object to the recipient. 2 Gifts of title or rights in rem to immovable property are not effective until an entry is made in the land register. 3 T…
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4II. Promise of a gift
Art. 243Art. 243 1 The promise of a gift is valid only if done in writing. 2 A promise to give title or rights in rem to immovable property is valid only if done as a public deed. 3 On fulfilment of the promise to give, the rel…
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4III. Effect of acceptance
Art. 244Art. 244 A person who bestows an object on another person by way of a gift may reverse the bestowal at any time before the recipient has accepted it, even where he has effectively separated it from his assets.
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3D. Conditions and provisos
4I. In general
Art. 245Art. 245 1 Conditions or provisos may be attached to a gift. 2 A gift whose occurrence is made contingent on the donor’s death is subject to the provisions governing testamentary dispositions.
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4II. Fulfilment of provisos
Art. 246Art. 246 1 The donor may bring action for fulfilment of a proviso that has been accepted by the recipient. 2 Where fulfilment of the proviso is in the public interest, the competent authority may compel fulfilment after…
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4III. Reversion clause
Art. 247Art. 247 1 The donor may provide that the object given shall revert to him in the event that the recipient dies before he does. 2 A reversionary right attached to a gift of title or rights in rem to immovable property m…
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3E. Liability of the donor
Art. 248Art. 248 1 The donor is liable for damage caused by the gift to the recipient only in the event of wilful injury or gross negligence. 2 He need give only such warranty as he has promised in respect of the object given o…
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3F. Annulment of gifts
4I. Claim for return of gift
Art. 249Art. 249 Where a gift has been made from hand to hand or a promise to give has been fulfilled, the donor may revoke the gift and claim return of the object given, provided the recipient is still enriched thereby: 1. Ame…
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4II. Revocation and invalidation of a promise to give
Art. 250Art. 250 1 The donor who has made a promise to give may revoke the promise and refuse to fulfil it: 1. on the same grounds as justify a claim for return of the object given in the case of a gift from hand to hand; 2. wh…
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4III. Prescription and heirs’ right of action
Art. 251Art. 251 1 Revocation may take place at any time in the year commencing on the day on which the grounds for revocation came to the donor’s attention. 2 If the donor dies before the end of this one-year period, his right…
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4IV. Death of the donor
Art. 252Art. 252 Unless otherwise provided, where the donor has undertaken to make periodic payments or performance, his obligation is extinguished on his death.
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2Title Eight: The Lease
3Section One: General Provisions
4A. Definition and scope of application
5I. Definition
Art. 253Art. 253 Leases are contracts in which a landlord or lessor grants a tenant or lessee the use of an object in exchange for rent.
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5II. Scope of application
61. Residential and commercial premises
Art. 253aArt. 253a 1 The provisions governing the leasing of residential and commercial premises are also applicable to objects on such premises of which the tenant has use. 2 They are not applicable to holiday homes hired for t…
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62. Provisions on protection against unfair rents
Art. 253bArt. 253b 1 The provisions governing protection against unfair rents (Art. 269 et seq.) apply mutatis mutandis to non-agricultural leases and to other contracts whose essential purpose is to regulate the transfer of the…
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4B. Tie-in transactions
Art. 254Art. 254 A tie-in transaction linked to a lease of residential or commercial premises is void where the conclusion or continuation of the lease is made conditional on such transaction and, under its terms, the tenant as…
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4C. Duration
Art. 255Art. 255 1 Leases may be concluded for a limited or indefinite duration. 2 Where the intention is that they should end without notice on expiry of the agreed duration, they have a limited duration. 3 Other leases are de…
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4D. Obligations of the landlord
5I. In general
Art. 256Art. 256 1 The landlord or lessor is required to make the object available on the agreed date in a condition fit for its designated use and to maintain it in that condition. 2 Clauses to the contrary to the detriment of…
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5II. Duty of disclosure
Art. 256aArt. 256a 1 If a report was drawn up on the return of the object at the end of the previous lease, the landlord or lessor must on request make this document available for perusal by the new tenant or lessee when the obj…
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5III. Charges and taxes
Art. 256bArt. 256b The landlord or lessor bears all taxes and charges in connection with the leased object.
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4E. Obligations of the tenant or lessee
5I. Payment of rent and accessory charges
61. Rent
Art. 257Art. 257 The rent is the consideration owed by the tenant or lessee to the landlord or lessor for the transfer of the use of the object.
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62. Accessory charges
7a. In general
Art. 257aArt. 257a 1 Accessory charges are the consideration due for services provided by the landlord or lessor or a third party in connection with the use of the property. 2 They are payable by the tenant or lessee only where…
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7b. Residential and commercial premises
Art. 257bArt. 257b 1 Accessory charges for residential and commercial premises are the actual outlays made by the landlord for services connected with the use of the property, such as heating, hot water and other operating costs…
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63. Payment deadlines
Art. 257cArt. 257c The tenant or lessee must pay the rent and, where applicable, the accessory charges at the end of each month and at the latest on expiry of the lease, unless otherwise agreed or required by local custom.
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64. Tenant in arrears
Art. 257dArt. 257d 1 Where, having accepted the property, the tenant or lessee is in arrears with payments of rent or accessory charges, the landlord or lessor may set a time limit for payment and notify him that in the event of…
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5II. Security furnished by the tenant
Art. 257eArt. 257e 1 Where the tenant of residential or commercial premises furnishes security in the form of cash or negotiable securities, the landlord must deposit it in a bank savings or deposit account in the tenant’s name.…
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5III. Care and consideration
Art. 257fArt. 257f 1 The tenant or lessee must use the object with all due care. 2 Where the lease relates to immovable property, the tenant must show due consideration for others who share the building and for neighbours. 3 If,…
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5IV. Duty of notification
Art. 257gArt. 257g 1 On learning of defects which he himself is not obliged to remedy, the tenant or lessee must inform the landlord or lessor. 2 Failure to notify renders the tenant or lessee liable for any damage incurred by t…
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5V. Duty of tolerance
Art. 257hArt. 257h 1 The tenant or lessee must tolerate works intended to remedy defects in the object or to repair or prevent damage. 2 The tenant or lessee must permit the landlord or lessor to inspect the object to the extent…
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4F. Non-performance or defective performance when object handed over
Art. 258Art. 258 1 Where the landlord or lessor fails to hand over the property on the agreed date or hands it over with defects rendering it wholly or partly unfit for its designated use, the tenant or lessee may sue for non-p…
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4G. Defects during the contract
5I. Obligation of tenant to carry out minor cleaning and repairs
Art. 259Art. 259 The tenant or lessee must remedy defects which can be dealt with by minor cleaning or repairs as part of regular maintenance and, depending on local custom, must do so at his own expense.
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5II. Rights of the tenant
61. In general
Art. 259aArt. 259a 1 Where defects arise in the object which are not attributable to the tenant or lessee and which he is not obliged to remedy at his own expense, or where he is prevented from using the object as contractually…
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62. Remedy of defects
7a. General principle
Art. 259bArt. 259b Where the landlord is aware of a defect and fails to remedy it within a reasonable time, the tenant may: a. terminate the contract with immediate effect if the defect renders the leased property unfit or signi…
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7b. Exception
Art. 259cArt. 259c The tenant or lessee is not entitled to rectification of the defect where the landlord or lessor provides full compensation for the defective object within a reasonable time.
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63. Reduction of rent
Art. 259dArt. 259d Where the object is rendered unfit or less fit for its designated use, the tenant or lessee may require the landlord or lessor to reduce the rent proportionately from the time when the landlord or lessor becam…
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64. Damages
Art. 259eArt. 259e Where the defect has caused damage to the tenant or lessee, the landlord or lessor is liable in damages unless he can prove that he was not at fault.
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65. Assumption of litigation
Art. 259fArt. 259f Where a third party claims a right over the object that is incompatible with the rights of the tenant or lessee, on notification by the latter the landlord or lessor is obliged to assume responsibility for the…
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66. Deposit of rent
7a. General principle
Art. 259gArt. 259g 1 A tenant of immovable property requesting that a defect be remedied must, in writing, set the landlord a reasonable time limit within which to comply with such request and may warn him that, in the event of…
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7b. Release of deposited rent
Art. 259hArt. 259h 1 The landlord becomes entitled to the rent paid on deposit if the tenant or lessee does not bring claims against him before the conciliation authority within 30 days of the due date for the first rent payment…
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7c. Procedure
Art. 259iArt. 259i Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 (AS 2010 1739; BBl 2006 7221). Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in forc…
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4H. Renovations and modifications
5I. By the landlord
Art. 260Art. 260 1 The landlord or lessor may renovate or modify the object only where conscionable for the tenant or lessee and the lease has not been terminated. 2 In carrying out such works, the landlord or lessor must give…
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5II. By the tenant
Art. 260aArt. 260a 1 The tenant or lessee may renovate or modify the object only with the written consent of the landlord or lessor. 2 Once such consent has been given, the landlord or lessor may require the restoration of the o…
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4J. Change of ownership
5I. Alienation of the object
Art. 261Art. 261 1 Where after concluding the contract the landlord alienates the object or is dispossessed of it in debt collection or bankruptcy proceedings, the lease passes to the acquirer together with ownership of the obj…
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5II. Conferral of limited rights in rem
Art. 261aArt. 261a Where the landlord or lessor grants a third party a limited right in rem and this is tantamount to a change of ownership, the provisions governing alienation of the object apply mutatis mutandis.
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5III. Entry under priority notice in the land register
Art. 261bArt. 261b 1 The parties to a lease may agree to have it entered under priority notice in the land register. 2 The effect of such entry is that every future owner must allow the property to be used in accordance with the…
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4K. Sub-letting
Art. 262Art. 262 1 A tenant may sub-let all or part of the property with the landlord’s consent. 2 The landlord may refuse his consent only if: a. the tenant refuses to inform him of the terms of the sub-lease; b. the terms and…
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4L. Transfer of lease to a third party
Art. 263Art. 263 1 The tenant of commercial premises may transfer his lease to a third party with the landlord’s written consent. 2 The landlord may withhold consent only for good cause. 3 Once the landlord gives his consent, t…
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4M. Early return of the object
Art. 264Art. 264 1 Where the tenant or lessee returns the object without observing the notice period or the deadline for termination, he is released from his obligations towards the landlord or lessor only if he proposes a new…
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4N. Set-off
Art. 265Art. 265 The landlord or lessor and the tenant or lessee may not waive in advance their right to set off claims arising from the lease.
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4O. End of lease
5I. Expiry of agreed duration
Art. 266Art. 266 1 Where the parties have expressly or tacitly agreed to a limited duration, the lease comes to an end on expiry thereof without any need for notice to be given. 2 If the lease is tacitly continued, its duration…
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5II. Notice of termination and termination dates
61. In general
Art. 266aArt. 266a 1 The parties may give notice to terminate a lease of indefinite duration by observing the legally prescribed notice periods and termination dates, except where they have agreed a longer notice period or a dif…
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62. Immovable and movable structures
Art. 266bArt. 266b A party may terminate a lease of immovable property or a movable structure by giving three months’ notice expiring on a date fixed by local custom or, in the absence of such custom, at the end of a six-month p…
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63. Residential premises
Art. 266cArt. 266c A party may terminate a lease of residential premises by giving three months’ notice expiring on a date fixed by local custom or, in the absence of such custom, at the end of a three-month period of the lease.
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64. Commercial premises
Art. 266dArt. 266d A party may terminate the lease of a commercial property by giving six months’ notice expiring on a date fixed by local custom or, in the absence of such custom, at the end of a three-month period of the lease.
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65. Furnished rooms and parking spaces
Art. 266eArt. 266e A party may terminate the lease of furnished rooms, a separately rented parking space or other comparable facility by giving two weeks’ notice expiring at the end of a one-month period of the lease.
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66. Chattels
Art. 266fArt. 266f A party may terminate a lease of chattels by giving three days’ notice expiring at any time.
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5III. Extraordinary notice
61. Good cause
Art. 266gArt. 266g 1 Where performance of the contract becomes unconscionable for the parties for good cause, they may terminate the lease by giving the legally prescribed notice expiring at any time. 2 The court determines the…
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62. Bankruptcy of the tenant or lessee
Art. 266hArt. 266h 1 Where the tenant or lessee becomes bankrupt after taking possession of the property, the landlord or lessor may call for security for future rent payments. He must grant the tenant or lessee and the bankrupt…
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63. Death of the tenant or lessee
Art. 266iArt. 266i In the event of the death of the tenant or lessee, his heirs may terminate the contract by giving the legally prescribed notice expiring on the next admissible termination date.
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64. Chattels
Art. 266kArt. 266k A lessee of a chattel hired for his own private use and leased to him on a commercial basis by the lessor may terminate the lease by giving at least 30 days’ notice expiring at the end of a three-month period…
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5IV. Required form of notice for residential and commercial premises
61. In general
Art. 266lArt. 266l 1 Notice to terminate leases of residential and commercial premises must be given in writing. 2 The landlord must give notice of termination using a form approved by the canton which informs the tenant how he…
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62. Family residence
7a. Notice given by the tenant
Art. 266mArt. 266m 1 Where the leased property serves as the family residence, one spouse may not terminate the lease without the express consent of the other. 2 If the spouse cannot obtain such consent or it is withheld without…
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7b. Notice given by the landlord
Art. 266nArt. 266n Amended by Annex No 11 to the Same-Sex Partnership Act of 18 June 2004, in force since 1 Jan. 2007 (AS 2005 5685; BBl 2003 1288). Amended by Annex No 11 to the Same-Sex Partnership Act of 18 June 2004, in forc…
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63. Void notice
Art. 266oArt. 266o Notice of termination is void if it does not conform to Articles 266l–266n.
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4P. Return of the object
5I. In general
Art. 267Art. 267 1 At the end of the lease, the tenant or lessee must return the object in a condition that accords with its contractually designated use. 2 Any clause whereby the tenant or lessee undertakes to pay compensation…
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5II. Inspection of object and notification of tenant or lessee
Art. 267aArt. 267a 1 When the object is returned, the landlord or lessor must inspect its condition and immediately inform the tenant or lessee of any defects for which he is answerable. 2 If the landlord or lessor fails to do s…
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4Q. Landlord’s special lien
5I. Scope
Art. 268Art. 268 1 As security for rent for the past year and the current six-month period, a landlord of commercial premises has a special lien on chattels located on the leased premises and either used as fixtures or required…
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5II. Objects belonging to third parties
Art. 268aArt. 268a 1 The rights of third parties to objects which the landlord knew or should have known do not belong to the tenant and to stolen, lost, missing or otherwise mislaid objects take precedence over the landlord’s s…
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5III. Exercise of lien
Art. 268bArt. 268b 1 Where the tenant wishes to vacate the premises or intends to remove the objects located thereon, the landlord may, with the assistance of the competent authority, retain such objects as are required to secur…
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3Section Two: Protection against Unfair Rents or other Unfair Claims by the Landlord in Respect of Leases of Residential and Commercial Premises
4A. Unfair rent
5I. General rule
Art. 269Art. 269 Rents are unfair where they permit the landlord to derive excessive income from the leased property or where they are based on a clearly excessive sale price.
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5II. Exceptions
Art. 269aArt. 269a In particular, rents are not generally held to be unfair if: a. they fall within the range of rents customary in the locality or district; b. they are justified by increases in costs or by additional services…
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4B. Index-linked rent
Art. 269bArt. 269b An agreement to link rent to an index is valid only where the lease is contracted for at least five years and the benchmark is the Swiss consumer prices index.
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4C. Periodical rent increases
Art. 269cArt. 269c An agreement to increase the rent periodically by fixed amounts is valid only where: a. the lease is contracted for at least three years; b. the rent is increased no more than once a year; and c. the amount by…
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4D. Rent increases and other unilateral amendments by the landlord
Art. 269dArt. 269d 1 The landlord may at any time increase the rent with effect from the next termination date. He must give notice of and reasons for the rent increase at least ten days before the beginning of the notice period…
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4E. Challenge to rent
5I. Request for rent reduction
61. Initial rent
Art. 270Art. 270 1 Within 30 days of taking possession of the property, the tenant may challenge the initial rent as unfair within the meaning of Articles 269 and 269a before the conciliation authority and request said authorit…
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62. During the lease
Art. 270aArt. 270a 1 The tenant may challenge the rent as unfair and request its reduction as of the next termination date where he has good cause to suppose that, because of significant changes to the calculation basis and most…
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5II. Challenging rent increases and other unilateral amendments by the landlord
Art. 270bArt. 270b 1 Within 30 days of receiving notice of a rent increase, the tenant may challenge it before the conciliation authority as unfair within the meaning of Articles 269 and 269a. 2 Paragraph 1 also applies where th…
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5III. Challenging index-linked rent
Art. 270cArt. 270c Without prejudice to the right to challenge the initial rent, a party may argue before the conciliation authority only that the rent increase or reduction requested by the other party is not justified by a cor…
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5IV. Challenging periodical rent increases
Art. 270dArt. 270d Without prejudice to the right to challenge the initial rent, the tenant may not challenge periodical rent increases.
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4F. Continued validity of lease during challenge proceedings
Art. 270eArt. 270e The existing lease remains in force without change: a. during conciliation proceedings, where the parties fail to reach agreement; b. during court proceedings, subject to provisional measures ordered by the co…
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3Section Three: Protection against Termination of Leases of Residential and Commercial Premises
4A. Notice open to challenge
5I. In general
Art. 271Art. 271 1 Notice of termination may be challenged where it contravenes the principle of good faith. 2 On request, reasons for giving notice must be stated.
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5II. Notice served by the landlord
Art. 271aArt. 271a 1 Notice of termination served by the landlord may be challenged in particular where it is given: a. because the tenant is asserting claims arising under the lease in good faith; b. because the landlord wishes…
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4B. Extension of the lease
5I. Tenant’s entitlement
Art. 272Art. 272 1 The tenant may request the extension of a fixed-term or open-ended lease where termination of the lease would cause a degree of hardship for him or his family that cannot be justified by the interests of the…
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5II. Exclusion of extension
Art. 272aArt. 272a 1 No extension is granted where notice of termination is given: a. because the tenant is in default on his payments (Art. 257d); b. because the tenant is in serious breach of his duty of care and consideration…
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5III. Length of extension
Art. 272bArt. 272b 1 A lease may be extended by up to four years in the case of residential premises and by up to six years for commercial premises. Within these overall limits, one or two extensions may be granted. 2 Where the…
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5IV. Continued validity of lease
Art. 272cArt. 272c 1 Either party may ask the court to modify the lease in line with changed circumstances when deciding on the lease extension. 2 Where the lease is not varied in the decision on the lease extension, it remains…
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5V. Notice given during extension
Art. 272dArt. 272d Unless the decision on extension or the extension agreement stipulates otherwise, the tenant may terminate the lease: a. by giving one month’s notice expiring at the end of a calendar month in cases where the…
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4C. Time limits and procedure
Art. 273Art. 273 1 A party wishing to challenge termination must bring the matter before the conciliation authority within 30 days of receiving the notice of termination. 2 A tenant wishing to apply for a lease extension must s…
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4D. Family residence
Art. 273aArt. 273a 1 Where the leased property serves as the family residence, the tenant’s spouse is likewise entitled to challenge the termination, request a lease extension and exercise the other rights accruing to the tenant…
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4E. Sub-letting
Art. 273bArt. 273b 1 The provisions of this Chapter apply to sub-leases provided the principal lease has not been terminated. A sub-lease may be extended only within the duration of the principal lease. 2 Where the main purpose…
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4F. Mandatory provisions
Art. 273cArt. 273c 1 The tenant may waive the rights conferred on him by the provisions of this Chapter only where this is expressly envisaged. 2 All agreements to the contrary are void.
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3Section Four: ...
Art. 274–274gArt. 274–274g Repealed by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, with effect from 1 Jan. 2011 (AS 2010 1739; BBl 2006 7221). Repealed by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008,…
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2Title Eightbis: The Usufructuary Lease
3A. Definition and scope of application
4I. Definition
Art. 275Art. 275 The usufructuary lease is a contract whereby the lessor undertakes to grant the lessee the use of a productive object or right and the benefit of its fruits or proceeds in exchange for rent.
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4II. Scope of application
51. Residential and commercial premises
Art. 276Art. 276 The provisions governing usufructuary leases of residential and commercial premises also apply to objects made available together with such premises for the use and enjoyment of the tenant.
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52. Agricultural lease
Art. 276aArt. 276a 1 Usufructuary leases relating to agricultural enterprises or to agricultural land and buildings are governed by the Federal Act of 4 October 1985SR 221.213.2 on Agricultural Leases, insofar as it contains spe…
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3B. Inventory
Art. 277Art. 277 Where machinery, livestock or supplies are included in the lease, each party must furnish the other with a precise, signed inventory and take part in a joint valuation thereof.
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3C. Obligations of the lessor
4I. Hand-over of object
Art. 278Art. 278 1 The lessor is required to make the object available on the agreed date in a condition fit for its designated use and operation. 2 If a report was drawn up on the return of the object at the end of the previou…
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4II. Major repairs
Art. 279Art. 279 The lessor is obliged to carry out major repairs to the object that become necessary during the lease at his own expense and as soon as the lessee has informed him of the need for such repairs.
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4III. Charges and taxes
3D. Obligations of the lessee
4I. Payment of rent and accessory charges
51. In general
Art. 281Art. 281 1 The lessee must pay the rent and, where applicable, the accessory charges at the end of each year of the lease but not later than when the lease expires, save where another payment date is stipulated by agree…
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52. Lessee in arrears
Art. 282Art. 282 1 Where, having accepted the property, the lessee is in arrears with payments of rent or accessory charges, the lessor may set a time limit of at least 60 days for payment and notify him that in the event of no…
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4II. Care, consideration and maintenance
51. Care and consideration
Art. 283Art. 283 1 The lessee must use the leased object with due care in accordance with its intended use and in particular must ensure that its long-term productivity is sustained. 2 Where the usufructuary lease relates to im…
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52. Normal maintenance
Art. 284Art. 284 1 The lessee must carry out the normal maintenance of the leased object. 2 In accordance with local custom, he must carry out minor repairs and replace inexpensive equipment and tools which have become useless…
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53. Breach of duty by the lessee
Art. 285Art. 285 1 If, despite written warning from the lessor, the lessee continues to act in breach of his duty of care, consideration or maintenance such that continuation of the usufructuary lease becomes unconscionable for…
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4III. Duty of notification
Art. 286Art. 286 1 If major repairs become necessary or a third party makes claims against the object of the usufructuary lease, the lessee must inform the lessor immediately. 2 Failure to notify renders the lessee liable for a…
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4IV. Duty of tolerance
Art. 287Art. 287 1 The lessee must tolerate major repairs intended to remedy defects in the object or to repair or prevent damage. 2 The lessee must permit the lessor to inspect the object to the extent required for maintenance…
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3E. Rights of the lessee on non-performance or defective performance
Art. 288Art. 288 1 The provisions on leases in Title 8 (Art. 258 and 259a–259i) apply mutatis mutandis: a. where the lessor fails to hand over the property on the agreed date or hands it over in a defective condition; b. where…
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3F. Renovations and modifications
4I. By the lessor
Art. 289Art. 289 1 The lessor may renovate or modify the object only where conscionable for the lessee and the usufructuary lease has not been terminated. 2 In carrying out such works, the lessor must give due consideration to…
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4II. By the lessee
Art. 289aArt. 289a 1 The lessee requires the lessor’s written consent in order to: a. alter the manner in which the object has traditionally been managed in ways which will have lasting significance beyond the duration of the le…
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3G. Change of ownership
Art. 290Art. 290 The provisions on leases in Title 8 (Art. 261–261b) apply mutatis mutandis: a. where the leased object is alienated; b. where limited rights in rem are established on the leased object; c. where the lease is en…
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3H. Sub-letting
Art. 291Art. 291 1 The lessee may sub-let all or part of the leased object with the lessor’s consent. 2 The lessor may refuse his consent to the sub-letting of premises which form part of a leased property only if: a. the lesse…
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3J. Transfer of usufructuary lease to a third party
Art. 292Art. 292 Article 263 applies mutatis mutandis to the transfer of a usufructuary lease of commercial premises to a third party.
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3K. Early return of the object
Art. 293Art. 293 1 Where the lessee returns the object without observing the notice period or the deadline for termination, he is released from his obligations towards the lessor only if he proposes a new lessee who is acceptab…
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3L. Set-off
Art. 294Art. 294 Article 265 applies mutatis mutandis to the set-off of claims arising from a usufructuary lease.
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3M. End of usufructuary lease
4I. Expiry of agreed duration
Art. 295Art. 295 1 Where the parties have expressly or tacitly agreed to a limited duration, the usufructuary lease comes to an end on expiry thereof without any need for notice to be given. 2 If the usufructuary lease is tacit…
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4II. Notice of termination and termination dates
Art. 296Art. 296 1 The parties may terminate an open-ended usufructuary lease by giving six months’ notice expiring on any date of their choosing unless otherwise stipulated by agreement or local custom and unless the nature of…
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4III. Extraordinary notice
51. Good cause
Art. 297Art. 297 1 Where performance of the contract becomes unconscionable for the parties for good cause, they may terminate the usufructuary lease by giving the legally prescribed notice expiring at any time. 2 The court det…
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52. Bankruptcy of the lessee
Art. 297aArt. 297a 1 Where the lessee becomes bankrupt after taking possession of the property, the lease ends on commencement of bankruptcy proceedings. 2 However, where the lessor has received sufficient security for the curre…
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53. Death of the lessee
Art. 297bArt. 297b In the event of the death of the lessee, his heirs and the lessor may terminate the contract by giving the legally prescribed notice expiring on the next admissible termination date.
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4IV. Required form of notice for residential and commercial premises
Art. 298Art. 298 1 Notice to terminate usufructuary leases of residential or commercial premises must be given in writing. 2 The lessor must give notice of termination using a form approved by the canton which informs the lesse…
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3N. Return of the object
4I. In general
Art. 299Art. 299 1 At the end of the usufructuary lease, the lessee must return the object together with all items listed in the inventory in the condition they are in at that time. 2 He is entitled to compensation for improvem…
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4II. Inspection of object and notification of lessee
Art. 299aArt. 299a 1 When the object is returned, the lessor must inspect its condition and immediately inform the lessee of any defects for which he is answerable. 2 If the lessor fails to do so, he forfeits his claims save in…
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4III. Replacement of inventory items
Art. 299bArt. 299b 1 Where items listed in the inventory were valued when the object was originally handed over to the lessee, he must return an inventory of items of the same type and estimated value or pay compensation for any…
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3O. Lessor’s lien
Art. 299cArt. 299c The lessor of commercial premises has the same right of lien in respect of the rent for the past year and the current year of a usufructuary lease as the landlord under the provisions governing leases and rent…
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3P. Protection against termination of usufructuary leases of residential and commercial premises
Art. 300Art. 300 1 The provisions on leases in Title 8 (Art. 271–273c) apply mutatis mutandis to protection against termination of usufructuary leases of residential or commercial premises. 2 The provisions governing the family…
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3Q. Procedure
Art. 301Art. 301 Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force since 1 Jan. 2011 (AS 2010 1739; BBl 2006 7221). Amended by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, in force…
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3R. Livestock lease
4I. Rights and obligations of the tenant farmer
Art. 302Art. 302 1 In respect of a lease of livestock which is not part of an agricultural tenancy, all benefits arising from leased livestock belong to the tenant farmer unless otherwise provided by agreement or local custom.…
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4II. Liability
Art. 303Art. 303 1 Unless otherwise provided by agreement or local custom, the tenant farmer is liable for damage to the leased livestock unless he can prove that such damage could not have been avoided even with all due care a…
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4III. Termination
Art. 304Art. 304 1 Where the lease is open-ended, either party may terminate it as of any date of their choosing, unless otherwise provided by agreement or local custom. 2 However, such termination must take place in good faith…
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2Title Nine: The Loan
3Section One: The Loan for Use
4A. Definition
Art. 305Art. 305 A loan for use is a contract whereby the lender undertakes to make an object available free of charge to the borrower for the latter’s use and the borrower undertakes to return it to him after having made use o…
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4B. Effect
5I. Borrower’s right of use
Art. 306Art. 306 1 The borrower may make use of the loaned object only for the purpose stipulated in the contract or, in the absence of any stipulation, for its normal purpose or the purpose dictated by its nature. 2 He is not…
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5II. Maintenance costs
Art. 307Art. 307 1 The borrower bears the ordinary costs of maintenance and, in the case of loaned animals, in particular the costs of feeding them. 2 He is entitled to reimbursement of extraordinary expenses he has been oblige…
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5III. Liability of joint borrowers
Art. 308Art. 308 Persons who have jointly borrowed a single object are jointly and severally liable for it.
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4C. Termination
5I. Loan for designated use
Art. 309Art. 309 1 Where the loan for use is open-ended, it ends as soon as the borrower has made use of the object as agreed or on expiry of the period in which such use could have been made of it. 2 The lender is entitled to…
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5II. Loan for non-designated use
Art. 310Art. 310 Where the contract stipulates neither the purpose nor the duration of the loan, the lender may reclaim the loaned object whenever he sees fit.
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5III. Death of the borrower
3Section Two: The Fixed-Term Loan
4A. Definition
Art. 312Art. 312 A fixed-term loan is a contract whereby the lender undertakes to transfer the ownership of a sum of money or of other fungible goods to the borrower, who in return undertakes to return objects of the same quant…
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4B. Effect
5I. Interest
61. Liability for interest
Art. 313Art. 313 1 In normal dealings, interest is payable on a fixed-term loan only where this has specifically been agreed. 2 In commercial transactions, interest is payable on fixed-term loans even where this has not been ex…
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62. Rules governing interest
Art. 314Art. 314 1 Where the interest rate is not stipulated in the contract, it is presumed to be the customary rate for loans of the same type at the time and place that the fixed-term loan was received. 2 Unless otherwise ag…
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5II. Prescriptive period for claims for delivery and acceptance
Art. 315Art. 315 The borrower’s claim for delivery and the lender’s claim for acceptance of the fixed-term loan prescribe six months after the date on which the other party defaults.
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5III. Insolvency of the borrower
Art. 316Art. 316 1 The lender may refuse to hand over the fixed-term loan if the borrower becomes insolvent after entering into the contract. 2 The lender has the right to refuse delivery even if insolvency occurred before the…
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4C. Goods in lieu of money
Art. 317Art. 317 1 Where the borrower receives securities or goods rather than the agreed sum of money, the amount of the fixed-term loan is deemed to be the current or market price of the securities or goods concerned at the t…
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4D. Timing of repayment
Art. 318Art. 318 Where a fixed-term loan contract does not stipulate the repayment date or the period of notice to terminate the contract or the expiry of the contract at any time on first request, the borrower must repay the l…
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2Title Ten: The Employment Contract
3Section One: The Individual Employment Contract
4A. Definition and conclusion
5I. Definition
Art. 319Art. 319 1 By means of an individual employment contract, the employee undertakes to work in the service of the employer for a limited or unlimited period and the employer undertakes to pay him a salary based on the amo…
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5II. Creation
Art. 320Art. 320 1 Except where the law provides otherwise, the individual employment contract is not subject to any specific formal requirement. 2 It is deemed to have been concluded where the employer accepts the performance…
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4B. Obligations of the employee
5I. Duty to work in person
Art. 321Art. 321 The employee must carry out the contractually assumed tasks in person, unless otherwise required by agreement or the circumstances.
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5II. Duty of care and loyalty
Art. 321aArt. 321a 1 The employee must carry out the work assigned to him with due care and loyally safeguard the employer’s legitimate interests. 2 He must use the employer’s machinery, work tools, technical equipment, installa…
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5III. Disclosure and hand-over of benefits received and work produced
Art. 321bArt. 321b 1 The employee is accountable to his employer for everything, and in particular sums of money, he receives from third parties in the performance of his contractual activities and must hand it over to the emplo…
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5IV. Overtime
Art. 321cArt. 321c 1 If more hours of work are required than envisaged under the employment contract or provided for by custom, standard employment contract or collective employment contract, the employee is obliged to perform s…
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5V. Compliance with general directives and instructions
Art. 321dArt. 321d 1 The employer is entitled to issue general directives and specific instructions regarding the performance of the work and the conduct of employees in his business or household. 2 The employee must comply in g…
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5VI. Employee’s liability
Art. 321eArt. 321e 1 The employee is liable for any damage he causes to the employer whether wilfully or by negligence. 2 The extent of the duty of care owed by the employee is determined by the individual employment contract, t…
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4C. Obligations of the employer
5I. Salary
61. Type and amount in general
Art. 322Art. 322 1 The employer must pay the agreed or customary salary or the salary that is fixed by standard employment contract or collective employment contract. 2 Where the employee lives in the employer’s household, his…
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62. Share in the business results
Art. 322aArt. 322a 1 Where the employee is by contract entitled to a share in the profits, the turnover or the results of the business expressed in some other manner, such share is calculated on the basis of the results for the…
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63. Commission
7a. Entitlement
Art. 322bArt. 322b 1 Where the employee is by contract entitled to commission on particular transactions, his entitlement is established as soon as the transaction with the third party enters into force. 2 In the case of transac…
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7b. Statement
Art. 322cArt. 322c 1 Where the terms of the contract do not require the employee to draw up a statement of commission due to him, on each date on which commission falls due, the employer must provide him with a written statement…
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64. Bonuses
Art. 322dArt. 322d 1 Where the employer pays a bonus over and above the salary on particular occasions, such as at Christmas or the end of the financial year, the employee is entitled to such bonus where it is contractually stip…
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5II. Payment of salary
61. Payment terms and periods
Art. 323Art. 323 1 Unless shorter periods or other payment terms have been agreed or are customary and unless otherwise provided by standard employment contract or collective employment contract, the salary is paid to the emplo…
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62. Withholding of salary
Art. 323aArt. 323a 1 To the extent provided for by individual agreement, custom, standard employment contract or collective employment contract, the employer may withhold part of the salary. 2 The amount withheld on any given pa…
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63. Salary protection
Art. 323bArt. 323b 1 Unless otherwise provided by agreement or custom, the salary must be paid to the employee in legal tender during working hours; a written salary statement must be provided to the employee. 2 Where the employ…
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5III. Salary in the event work is not possible
61. Failure by employer to accept performance
Art. 324Art. 324 1 Where the employer is at fault in preventing performance of the work or fails to accept its performance for other reasons, he remains obliged to pay the salary but the employee is not obliged to make up the t…
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62. Employee prevented from working
7a. General principle
Art. 324aArt. 324a 1 Where the employee is prevented from working by personal circumstances for which he is not at fault, such as illness, accident, legal obligations or public duties, the employer must pay him his salary for a…
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7b. Exceptions
Art. 324bArt. 324b 1 If the employee has compulsory insurance prescribed by law against the financial consequences of being prevented from working by personal circumstances for which he is not at fault, the employer is not oblig…
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5IV. Assignment and pledge of salary claims
Art. 325Art. 325 Amended by No I of the FA of 14 Dec. 1990, in force since 1 July 1991 (AS 1991 974; BBl 1989 III 1233, 1990 I 120). Amended by No I of the FA of 14 Dec. 1990, in force since 1 July 1991 (AS 1991 974; BBl 1989 I…
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5V. Piece work
61. Work allocation
Art. 326Art. 326 1 Where by contract the employee carries out piece work for a single employer, the latter must allocate a sufficient quantity of work to him. 2 The employer may allocate time work to the employee where through…
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62. Piece work rates
Art. 326aArt. 326a 1 Where by contract the employee carries out piece work, the employer must inform him of the applicable rate of pay before the start of each task. 2 Should the employer fail to give such information, he must p…
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5VI. Work tools, materials and expenses
61. Work tools and materials
Art. 327Art. 327 1 Unless otherwise provided by agreement or custom, the employer provides the employee with the tools and materials that the work requires. 2 Where the employee himself supplies such tools or materials with the…
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62. Expenses
7a. In general
Art. 327aArt. 327a 1 The employer must reimburse the employee for all expenses necessarily incurred in the performance of the work and, in the case of work done off the employer’s premises, for his necessary living expenses. 2 A…
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7b. Motor vehicle
Art. 327bArt. 327b 1 Where with the employer’s consent the employee uses his own motor vehicle or a vehicle supplied by the employer for business purposes, he is entitled to reimbursement of the normal running and maintenance co…
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7c. Payment dates
Art. 327cArt. 327c 1 Expenses are reimbursed when the salary is paid based on the statement of expenses submitted by the employee, unless a shorter period has been agreed or is customary. 2 Where an employee regularly incurs exp…
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5VII. Protection of the employee’s personality rights
61. In general
Art. 328Art. 328 1 Within the employment relationship, the employer must acknowledge and safeguard the employee’s personality rights, have due regard for his health and ensure that proper moral standards are maintained. In part…
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62. Shared household
Art. 328aArt. 328a 1 Where the employee lives in the employer’s household, the employer must provide adequate board and appropriate lodgings. 2 If the employee is prevented from working through no fault of his own by sickness or…
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63. When handling personal data
Art. 328bArt. 328b Inserted by Annex No 2 to the FA of 19 June 1992 on Data Protection, in force since 1 July 1993 (AS 1993 1945; BBl 1988 II 413). Inserted by Annex No 2 to the FA of 19 June 1992 on Data Protection, in force si…
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5VIII. Days off work, holidays, and leave
61. Days off work
Art. 329Art. 329 1 The employer must allow the employee one day off per week, generally Sunday or, where circumstances do not permit this, a full weekday instead. 2 In special circumstances, he may allow the employee several da…
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62. Holidays
7a. Annual entitlement
Art. 329aArt. 329a 1 The employer must allow the employee during each year of service at least four weeks’ holiday and five weeks’ holiday for employees under the age of 20. Amended by No I of the FA of 16 Dec. 1983, in force si…
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7b. Reduction
Art. 329bArt. 329b 1 Where in a given year of service the employee through his own fault is prevented from working for more than a month in total, the employer may reduce his holiday entitlement by one-twelfth for each full mont…
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7c. Consecutive weeks, timing
Art. 329cArt. 329c 1 The holiday entitlement for a given year of service is generally granted during that year; at least two weeks of holiday must be taken consecutively. Amended by No I of the FA of 16 Dec. 1983, in force since…
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7d. Salary
Art. 329dArt. 329d 1 The employer must pay the employee the full salary due for the holiday entitlement and fair compensation for any lost benefits in kind. 2 During the employment relationship, the holiday entitlement may not b…
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63. Leave for extracurricular youth work
Art. 329eArt. 329e Inserted by Art. 13 of the FA of 6 Oct. 1989 on Youth Work, in force since 1 Jan. 1991 (AS 1990 2007; BBl 1988 I 825). Inserted by Art. 13 of the FA of 6 Oct. 1989 on Youth Work, in force since 1 Jan. 1991 (AS…
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64. Maternity leave
Art. 329fArt. 329f Inserted by Annex No 1 to the FA of 3 Oct. 2003, in force since 1 July 2005 (AS 2005 1429; BBl 2002 7522, 2003 1112 2923). Inserted by Annex No 1 to the FA of 3 Oct. 2003, in force since 1 July 2005 (AS 2005 1…
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65. Parental leave
7a. General
Art. 329gArt. 329g Inserted by No II 1 of the FA of 20 Dec. 2019 on Improving the Compatibility of Employment and Caring for Family Members (AS 2020 4525; BBl 2019 4103). Amended by Annex No 1 of the FA of 17 March 2023 (Daily A…
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7b. In the event of the mother’s death
Art. 329gbisArt. 329gbis Inserted by Annex No 1 of the FA of 17 March 2023 (Daily Allowance for the Surviving Parent), in force since 1 Jan. 2024 (AS 2023 680; BBl 2022 2515, 2742). Inserted by Annex No 1 of the FA of 17 March 2023…
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66. Leave to care for family members
Art. 329hArt. 329h Inserted by No II 1 of the FA of 20 Dec. 2019 on Improving the Compatibility of Employment and Caring for Family Members, in force since 1 Jan. 2021 (AS 2020 4525; BBl 2019 4103). Inserted by No II 1 of the FA…
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67. Leave to care for a child whose health is seriously impaired by illness or accident
Art. 329iArt. 329i Inserted by No II 1 of the FA of 20 Dec. 2019 on Improving the Compatibility of Work and Caring for Family Members, in force since 1 July 2021 (AS 2020 4525; BBl 2019 4103). Inserted by No II 1 of the FA of 20…
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68. Adoption leave
Art. 329jArt. 329j Inserted by Annex No 1 of the FA of 1 Oct. 2021, in force since 1 Jan. 2023 (AS 2022 468; BBl 2019 7095, 7303). Inserted by Annex No 1 of the FA of 1 Oct. 2021, in force since 1 Jan. 2023 (AS 2022 468; BBl 201…
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5IX. Other duties
61. Security
Art. 330Art. 330 1 Where the employee furnishes security for performance of his obligations under the employment contract, the employer must keep it separate from his own assets and guarantee its safekeeping. 2 The employer ret…
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62. Reference
Art. 330aArt. 330a 1 The employee may at any time request from the employer a reference concerning the nature and the duration of the employment relationship, the quality of his work and his conduct. 2 At the employee’s express…
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63. Duty of information
Art. 330bArt. 330b Inserted by Art. 2 No 2 of the FA of 17 Dec. 2004 approving and implementing the Protocol relating to the extension of the Agreement between the European Community and its Member States, of the one part, and t…
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4D. Employee benefits provision
5I. Obligations of the employer
Art. 331Art. 331 1 Where the employer contributes to a employee benefits scheme Term in accordance with Annex No 2 of the Vested Benefits Act of 17 Dec. 1993, in force since 1 Jan. 1995 (AS 1994 2386; BBl 1992 III 533). or the…
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5II. Beginning and end of insurance cover
Art. 331aArt. 331a Amended by Annex No 2 to the FA of 17 Dec. 1993 on the Vesting of Occupational Old Age, Survivors' and Invalidity Benefits, in force since 1 Jan. 1995 (AS 1994 2386; BBl 1992 III 533). Amended by Annex No 2 to…
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5III. Assignment and pledge
Art. 331bArt. 331b Amended by Annex No 2 to the FA of 17 Dec. 1993 on the Vesting of Occupational Old Age, Survivors' and Invalidity Benefits, in force since 1 Jan. 1995 (AS 1994 2386; BBl 1992 III 533). Amended by Annex No 2 to…
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5IV. Reservations on medical grounds
Art. 331cArt. 331c Amended by Annex No 2 to the FA of 17 Dec. 1993 on the Vesting of Occupational Old Age, Survivors' and Invalidity Benefits, in force since 1 Jan. 1995 (AS 1994 2386; BBl 1992 III 533). Amended by Annex No 2 to…
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5V. Promotion of home ownership
61. Pledge
Art. 331dArt. 331d Inserted by No II of the FA of 17 Dec. 1993 on the Promotion of Home Ownership using Occupational Pension Benefits, in force since 1 Jan. 1995 (AS 1994 2372; BBl 1992 VI 237). Inserted by No II of the FA of 17…
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62. Early withdrawal
Art. 331eArt. 331e Inserted by No II of the FA of 17 Dec. 1993 on the Promotion of Home Ownership using Occupational Pension Benefits, in force since 1 Jan. 1995 (AS 1994 2372; BBl 1992 VI 237). Inserted by No II of the FA of 17…
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63. Restrictions if the benefits scheme has a cover deficit
Art. 331fArt. 331f Inserted by Annex No 2 to the FA of 18 June 2004, in force since 1 Jan. 2005 (AS 2004 4635; BBl 2003 6399). Inserted by Annex No 2 to the FA of 18 June 2004, in force since 1 Jan. 2005 (AS 2004 4635; BBl 2003…
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4E. Right to inventions and designs
Art. 332Art. 332 Amended by Annex No II to the FA of 5 Oct. 2001 on the Protection of Designs, in force since 1 July 2002 (AS 2002 1456; BBl 2000 2729). Amended by Annex No II to the FA of 5 Oct. 2001 on the Protection of Desig…
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Art. 332aArt. 332a Repealed by Annex No II to the FA of 5 Oct. 2001 on the Protection of Designs, with effect from 1 July 2002 (AS 2002 1456; BBl 2000 2729). Repealed by Annex No II to the FA of 5 Oct. 2001 on the Protection of…
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4F. Transfer of employment relationship
51. Effects
Art. 333Art. 333 1 Where the employer transfers the company or a part thereof to a third party, the employment relationship and all attendant rights and obligations pass to the acquirer as of the day of the transfer, unless the…
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52. Consultation of employees’ organisation
Art. 333aArt. 333a Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). 1 Where…
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53. Transfer of the company on insolvency
Art. 333bArt. 333b Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 6455). Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 64…
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4G. End of the employment relationship
5I. Fixed-term employment relationship
Art. 334Art. 334 Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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5II. Open-ended employment relationship
61. Notice in general
Art. 335Art. 335 Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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62. Notice periods
7a. In general
Art. 335aArt. 335a Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551).…
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7b. During the probation period
Art. 335bArt. 335b Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551).…
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7c. After the probation period
Art. 335cArt. 335c Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Inserted by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551).…
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5IIbis. Mass redundancies
61. Definition
Art. 335dArt. 335d Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Mass re…
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62. Scope of application
Art. 335eArt. 335e Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). 1 The p…
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63. Consultation of employees’ organisation
Art. 335fArt. 335f Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). 1 An em…
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64. Procedure
Art. 335gArt. 335g Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). Inserted by No I of the FA of 17 Dec. 1993, in force since 1 May 1994 (AS 1994 804; BBl 1993 I 805). 1 The e…
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65. Social plan
7a. Definition and principles
Art. 335hArt. 335h Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 6455). Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 64…
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7b. Duty to negotiate
Art. 335iArt. 335i Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 6455). Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 64…
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7c. Preparation by an arbitral tribunal
Art. 335jArt. 335j Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 6455). Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 64…
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7d. During bankruptcy or composition proceedings
Art. 335kArt. 335k Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 6455). Inserted by the Annex to the FA of 21 June 2013, in force since 1 Jan. 2014 (AS 2013 4111; BBl 2010 64…
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5III. Protection from termination
61. Wrongful termination
7a. General principle
Art. 336Art. 336 Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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7b. Penalties
Art. 336aArt. 336a Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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7c. Procedure
Art. 336bArt. 336b Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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62. Termination at an inopportune juncture
7a. By the employer
Art. 336cArt. 336c Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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7b. By the employee
Art. 336dArt. 336d Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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5IV. Termination with immediate effect
61. Requirements
7a. For good cause
Art. 337Art. 337 1 Both employer and employee may terminate the employment relationship with immediate effect at any time for good cause; the party doing so must give his reasons in writing at the other party’s request. Amended…
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7b. Salary at risk
Art. 337aArt. 337a In the event of the employer’s insolvency, the employee may terminate the employment relationship with immediate effect unless he is furnished with security for his claims under such relationship within an app…
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62. Consequences
7a. Termination for good cause
Art. 337bArt. 337b 1 Where the good cause for terminating the employment relationship with immediate effect consists in breach of contract by one party, he is fully liable in damages with due regard to all claims arising under t…
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7b. Termination without just cause
Art. 337cArt. 337c Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). Amended by No I of the FA of 18 March 1988, in force since 1 Jan. 1989 (AS 1988 1472; BBl 1984 II 551). 1…
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7c. Failure to take up post and departure without just cause
Art. 337dArt. 337d 1 Where the employee fails to take up his post or leaves it without notice without good cause, the employer is entitled to compensation equal to one-quarter of the employee’s monthly salary; in addition, he is…
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5V. Death of the employee or employer
61. Death of the employee
Art. 338Art. 338 1 The employment relationship ends on the death of the employee. 2 However, the employer must pay the salary for a further month thereafter or, where the employee had completed more than five years of service,…
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62. Death of the employer
Art. 338aArt. 338a 1 On the death of the employer, the employment relationship passes to his heirs; the provisions governing transfer of employment relationships on transfer of a business apply mutatis mutandis. 2 Where an emplo…
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5VI. Consequences of termination of the employment relationship
61. Maturity of claims
Art. 339Art. 339 1 When the employment relationship ends, all claims arising therefrom fall due. 2 In the case of claims for commission on transactions performed partly or entirely after the end of the employment relationship,…
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62. Return
Art. 339aArt. 339a 1 By the time the employment relationship ends, each contracting party must return to the other everything received from him or from third parties for his account during the employment relationship. 2 In parti…
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63. Severance allowance
7a. Requirements
Art. 339bArt. 339b 1 Where an employment relationship with an employee of at least 50 years of age comes to an end after twenty years or more of service, the employer must pay the employee a severance allowance. 2 If the employe…
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7b. Amount and due date
Art. 339cArt. 339c 1 The amount of the severance allowance may be fixed by written individual agreement, standard employment contract or collective employment contract but may never be less than two months’ salary for the employ…
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7c. Benefits in lieu of allowance
Art. 339dArt. 339d 1 Where the employee receives benefits from an occupational benefits scheme, these may be deducted from the severance allowance to the extent that they were funded by the employer either directly or through hi…
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5VII. Prohibition of competition
61. Requirements
Art. 340Art. 340 1 An employee with capacity to act may give the employer a written undertaking to refrain from engaging in any activity that competes with the employer once the employment relationship has ended and in particul…
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62. Restrictions
Art. 340aArt. 340a 1 The prohibition must be appropriately restricted with regard to place, time and scope such that it does not unfairly compromise the employee’s future economic activity; it may exceed three years only in spec…
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63. Consequences of infringement
Art. 340bArt. 340b 1 An employee who infringes the prohibition of competition must provide compensation for the resultant damage to the employer. 2 Where an employee who infringes the prohibition is liable to pay a contractual p…
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64. Extinction
Art. 340cArt. 340c 1 The prohibition of competition is extinguished once the employer demonstrably no longer has a substantial interest in its continuation. 2 The prohibition is likewise extinguished if the employer terminates t…
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4H. No right of waiver and prescription
Art. 341Art. 341 1 For the period of the employment relationship and for one month after its end, the employee may not waive claims arising from mandatory provisions of law or the mandatory provisions of a collective employment…
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4I. Reservation of public law and effects under civil law
Art. 342Art. 342 1 The following are reserved: a. Amended by No II 2 of the FA of 18 Dec. 1998, in force since 1 May 1999 (AS 1999 1384; BBl 1998 V 5569). Amended by No II 2 of the FA of 18 Dec. 1998, in force since 1 May 1999…
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Art. 343Art. 343 Repealed by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, with effect from 1 Jan. 2011 (AS 2010 1739; BBl 2006 7221). Repealed by Annex 1 No II 5 of the Civil Procedure Code of 19 Dec. 2008, with…
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3Section Two: Special Individual Employment Contracts
4A. The Apprenticeship Contract
5I. Definition and conclusion
61. Definition
Art. 344Art. 344 An apprenticeship contract is a contract whereby the employer undertakes to provide an apprentice with the requisite training for a particular vocation and the apprentice undertakes to work in the employer’s se…
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62. Conclusion and content
Art. 344aArt. 344a 1 An apprenticeship contract is valid only if it is done in writing. 2 The contract must stipulate the nature and duration of the vocational training, the salary, the probation period, the working hours and th…
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5II. Effects
61. Special obligations of the trainee and his legal representative
Art. 345Art. 345 1 The apprentice must do his utmost to achieve the goal of the apprenticeship. 2 The apprentice’s legal representative must do his best to support the employer in his task and to foster a good relationship betw…
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62. Special obligations of the employer
Art. 345aArt. 345a 1 The employer must ensure that the vocational training is supervised by a specialist with the necessary professional skills and personal qualities. 2 He must without deducting any salary allow the apprentice…
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5III. Termination
61. Early termination
Art. 346Art. 346 1 During the probation period, the apprenticeship relationship may be terminated at any time by giving seven days’ notice. 2 The apprenticeship relationship may be terminated with immediate effect for good caus…
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62. Certificate of apprenticeship
Art. 346aArt. 346a 1 At the end of the apprenticeship, the employer must provide the apprentice with a certificate setting out the requisite information concerning the vocational training acquired and the duration of the apprent…
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4B. The Commercial Traveller’s Contract
5I. Definition and conclusion
61. Definition
Art. 347Art. 347 1 Under a commercial traveller’s contract, the commercial traveller undertakes to broker or conclude all manner of transactions on behalf of the owner of a trading, manufacturing or other type of commercial com…
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62. Conclusion and content
Art. 347aArt. 347a 1 The employment relationship is defined by written contract which stipulates in particular: a. the duration and termination of the employment relationship; b. the commercial traveller’s authority; c. the remu…
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5II. Obligations and authority of the commercial traveller
61. Special obligations
Art. 348Art. 348 1 The commercial traveller must visit the clients in the prescribed manner unless there is just cause to vary it; he may neither broker nor conclude transactions on his own behalf or on behalf of a third party…
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62. Del credere
Art. 348aArt. 348a 1 Any agreement whereby the commercial traveller is made liable for the client’s payment or any other type of performance of the client’s obligations or for all or part of the recovery costs is void. 2 Where t…
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63. Authority
Art. 348bArt. 348b 1 Unless otherwise agreed in writing, a commercial traveller only has authority to broker transactions. 2 Where the commercial traveller is authorised to conclude transactions, his powers extend to all legal p…
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5III. Special obligations of the employer
61. Area of activity
Art. 349Art. 349 1 Where a particular area or clientele is allocated to the commercial traveller, it is deemed to have been allocated to him exclusively unless otherwise agreed in writing; however, the employer remains authoris…
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62. Salary
7a. In general
Art. 349aArt. 349a 1 The employer must pay the commercial traveller a salary consisting of a fixed salary component with or without commission. 2 A written agreement whereby the salary consists exclusively or principally of comm…
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7b. Commission
Art. 349bArt. 349b 1 Where an area or clientele is allocated exclusively to a commercial traveller, the agreed or customary commission is payable to him on all transactions concluded by him or his employer within such area or cl…
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7c. Prevention from travelling
Art. 349cArt. 349c 1 Where the commercial traveller through no fault of his own is prevented from travelling and his salary must nonetheless be paid to him by law or by contract, it is calculated on the basis of the fixed salary…
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63. Expenses
Art. 349dArt. 349d 1 Where the commercial traveller works for several employers at the same time and there is no written agreement stipulating how expenses are to be divided, each employer must reimburse an equal share. 2 Any ag…
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64. Special lien
Art. 349eArt. 349e 1 By way of securing claims due to him under the employment relationship and, in the event that the employer becomes insolvent, claims that are not yet due, the commercial traveller has a special lien on chatt…
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5IV. Termination
61. In special circumstances
Art. 350Art. 350 1 Where commission makes up at least one-fifth of a commercial traveller’s salary and is subject to major seasonal fluctuations, and where the commercial traveller has worked for the employer since the end of t…
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62. Special consequences
Art. 350aArt. 350a 1 At the end of the employment relationship, the commercial traveller is entitled to commission on all the transactions that he concluded or brokered and on all orders passed on to the employer before the end…
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4C. The Homeworker’s Contract
5I. Definition and conclusion
61. Definition
Art. 351Art. 351 Under a homeworker’s contract, the homeworker Term in accordance with Art. 21 No 1 of the Homeworking Act of 20 March 1981, in force since 1 April 1983 (AS 1983 108; BBl 1980 II 282). This amendment is taken in…
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62. Notification of conditions
Art. 351aArt. 351a 1 Before each work assignment is given to the homeworker, the employer must inform him of the applicable conditions and specifications to the extent these are not already covered by the general terms and condi…
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5II. Special obligations of the home worker
61. Performance of the work
Art. 352Art. 352 1 The homeworker must start the work he has accepted on time, finish it by the agreed deadline and deliver the results to the employer. 2 If the work is defective and the homeworker is at fault, he is obliged t…
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62. Materials and work tools
Art. 352aArt. 352a 1 The homeworker is obliged to treat the materials and tools supplied by the employer with all due care, to give account of how they are used and to return tools and unused materials to the employer. 2 Where i…
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5III. Special obligations of the employer
61. Acceptance of completed work
Art. 353Art. 353 1 The employer must inspect the completed work on delivery and notify the homeworker of any defects within one week. 2 Where the employer fails to notify defects to the homeworker promptly, the work is deemed t…
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62. Salary
7a. Payment
Art. 353aArt. 353a 1 Where the homeworker is engaged by the employer on a continuous basis, the salary for the work carried out is paid twice monthly or, with the homeworker’s consent, at the end of each month, and otherwise on…
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7b. When prevented from working
Art. 353bArt. 353b 1 An employer who engages the home worker on a continuous basis is obliged pursuant to Articles 324 and 324a to pay his salary in the event that the employer fails to accept his work or he is prevented from wo…
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5IV. Termination
Art. 354Art. 354 1 Where trial work is assigned to the homeworker, unless otherwise agreed the employment relationship is deemed to have been entered into on a trial basis for a fixed period. 2 Unless otherwise agreed, where th…
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4D. Applicability of General Provisions
Art. 355Art. 355 The general provisions governing individual employment contracts are applicable by way of supplement to apprenticeship contracts, commercial traveller’s contracts and homeworker’s contracts.
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3Section Three: The Collective Employment Contract and the Standard Employment Contract
4A. The Collective Employment Contract
5I. Definition, content, form and duration
61. Definition and content
Art. 356Art. 356 1 A collective employment contract is a contract whereby employers or employers’ associations and employees’ associations jointly lay down clauses governing the conclusion, nature and termination of employment…
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62. Freedom of association and freedom to practise a profession
Art. 356aArt. 356a 1 Any clause in a collective employment contract or individual agreement between the contracting parties intended to compel an employer or employee to join a contracting association is void. 2 Any clause in a…
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63. Accession
Art. 356bArt. 356b 1 Individual employers and individual employees in the service of employers bound by the collective employment contract may accede to it with the consent of the contracting parties, whereupon they become parti…
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64. Form and duration
Art. 356cArt. 356c 1 The conclusion of a collective employment contract, its amendment and termination by mutual agreement, the accession of a new contracting party and notice to terminate the contract are valid only if done in…
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5II. Effects
61. On participating employers and employees
Art. 357Art. 357 1 Unless otherwise stipulated in the collective employment contract, its provisions relating to the formation, nature and termination of individual employment relationships are binding on the participating empl…
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62. On the contracting parties
Art. 357aArt. 357a 1 The contracting parties are obliged to ensure compliance with the collective employment contract; to this end associations must exert their influence on their members and, where required, have recourse to th…
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63. Joint enforcement
Art. 357bArt. 357b 1 A collective employment contract concluded between associations may stipulate that each contracting party has an actionable claim against the other parties in the event that they fail to discharge their duty…
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5III. Relationship to mandatory law
Art. 358Art. 358 The mandatory law of the Confederation and the cantons takes precedence over the collective employment contract; however, other provisions may be agreed to the benefit of employees provided they do not conflict…
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4B. The Standard Employment Contract
5I. Definition and content
Art. 359Art. 359 1 The standard employment contract is a contract in which clauses governing the formation, nature and termination of certain types of employment relationship are laid down. 2 The cantons shall draw up standard…
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5II. Competent authorities and procedure
Art. 359aArt. 359a 1 Where the scope of application of a standard employment contract extends over more than one canton, the Federal Council is responsible for issuing it, but otherwise the canton is responsible. 2 Before being…
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5III. Effects
Art. 360Art. 360 1 Unless otherwise agreed, the standard employment contract applies directly to the employment relationships that it governs. 2 The standard employment contract may stipulate that agreements derogating from cer…
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5IV. Minimum wage
61. Requirements
Art. 360aArt. 360a Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2004 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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62. Tripartite commissions
Art. 360bArt. 360b Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2003 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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63. Official secrecy
Art. 360cArt. 360c Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2003 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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64. Effects
Art. 360dArt. 360d Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2004 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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65. Associations’ right of action
Art. 360eArt. 360e Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2004 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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66. Notification
Art. 360fArt. 360f Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to Switzerland, in force since 1 June 2004 (AS 2003 1370; BBl 1999 6128). Inserted by Annex No 2 to the FA of 8 Oct. 1999 on Workers posted to…
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3Section Four: Mandatory Provisions
4A. Provisions from which no derogation is permissible to the detriment of the employer or the employee
Art. 361Art. 361 1 It is not permissible to derogate from the following provisions to the detriment of either the employer or the employee by individual agreement, standard employment contract or collective employment contract:…
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4B. Provisions from which no derogation is permissible to the detriment of the employee
Art. 362Art. 362 1 It is not permissible to derogate from the following provisions to the detriment of the employee by individual agreement, standard employment contract or collective employment contract: Amended by No II 1 of…
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2Title Eleven: The Work Contract
3A. Definition
Art. 363Art. 363 A work contract is a contract whereby the contractor undertakes to produce a piece of work and the customer undertakes to pay the contractor for that work.
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3B. Effects
4I. Contractor’s obligations
51. In general
Art. 364Art. 364 1 The contractor generally has the same duty of care as the employee in an employment relationship. Amended by No II Art. 1 No 6 of the FA of 25 June 1971, in force since 1 Jan. 1972 (AS 1971 1465; BBl 1967 II…
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52. Regarding materials
Art. 365Art. 365 1 Where the contractor is responsible for supplying the materials, he is liable to the customer for their quality and has the same warranty obligation as a seller. 2 Where materials are supplied by the customer…
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53. Prompt commencement and contractual production of the work
Art. 366Art. 366 1 Where the contractor does not begin the work on time or delays its production in breach of contract or, through no fault of the customer, falls so far behind that there is no longer any prospect of completing…
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54. Liability for defects
6a. Identification of defects
Art. 367Art. 367 1 The customer must inspect the condition of the delivered or completed work as soon as feasible in the normal course of business and must inform the contractor of any defects discovered. 1bis The period for re…
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6b. Rights of the customer in the event of defects
Art. 368Art. 368 1 Where the work is so defective or deviates from the contractual terms to such an extent that the customer has no use for it or cannot reasonably be expected to accept it, the customer may refuse acceptance an…
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6c. Customer’s liability
Art. 369Art. 369 The rights accruing to the customer in respect of defects in the work are forfeited if he is at fault for such defects due to having given instructions concerning production of the work that were contrary to th…
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6d. Approval of the work
Art. 370Art. 370 1 Once the completed work has been expressly or tacitly approved by the customer, the contractor is released from all liability save in respect of defects which could not have been discovered on acceptance and…
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6e. Prescription
Art. 371Art. 371 Amended by No I of the FA of 16 March 2012 (Limitation Periods for Guarantee Claims. Extension and Coordination), in force since 1 Jan. 2013 (AS 2012 5415; BBl 2011 2889 3903). Amended by No I of the FA of 16 M…
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4II. Customer’s obligations
51. Due date for payment
Art. 372Art. 372 1 The customer must pay for the work on completion or delivery. 2 Where the work is delivered in stages and payment in instalments has been agreed, the amount due for each stage of the work is payable on delive…
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52. Amount of payment
6a. Firm commitment
Art. 373Art. 373 1 Where the payment was fixed in advance as an exact amount, the contractor is obliged to produce the work for the agreed amount and may not charge more even if the work entailed more labour or greater expense…
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6b. By the value of the work
Art. 374Art. 374 Where the price was not fixed in advance or fixed only as an approximate amount, it is determined according to the value of the work produced and the expenses incurred by the contractor.
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3C. Termination
4I. Withdrawal because estimate exceeded
Art. 375Art. 375 1 Where an estimate agreed with the contractor is exceeded by a disproportionate amount through no fault of the customer, he has the right to withdraw from the contract before or after completion. 2 In the case…
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4II. Destruction of the work
Art. 376Art. 376 1 If the work is destroyed by accident prior to completion or delivery, the contractor is not entitled to payment for work done or of expenses incurred unless the customer is in default on acceptance of the wor…
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4III. Withdrawal by the customer against indemnity
Art. 377Art. 377 The customer may withdraw from the contract at any time before the work is completed provided he pays for work already done and indemnifies the contractor in full.
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4IV. Impossibility of performance for reasons attributable to the customer
Art. 378Art. 378 1 Where completion of the work is rendered impossible by chance occurrence affecting the customer, the contractor is entitled to payment for the work already done and of expenses incurred that were not included…
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4V. Death or incapacity of the contractor
Art. 379Art. 379 1 Where the contractor dies or becomes incapable of finishing the work through no fault of his own, the work contract becomes void if it was concluded in view of the personal attributes of the contractor. 2 The…
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2Title Twelve: The Publishing Contract
3A. Definition
Art. 380Art. 380 A publishing contract is a contract whereby the originator – the author of a literary or artistic work or his legal successor – undertakes to entrust the work to a publisher, who undertakes to reproduce and dis…
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3B. Effects
4I. Transfer of copyright and warranty
Art. 381Art. 381 1 The author’s rights to the work are transferred to the publisher to the extent and for as long as required for performance of the contract. 2 The originator must give warranty to the publisher that he had the…
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4II. Originator’s power of disposal
Art. 382Art. 382 1 As long as the editions of the work to which the publisher is entitled have not yet been exhausted, the originator may not make other arrangements regarding the work or parts thereof to the publisher’s detrim…
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4III. Number of editions
Art. 383Art. 383 1 Where no clause was agreed that stipulates the number of editions, the publisher is entitled to produce only one. 2 Where nothing was agreed, the publisher determines the size of the edition but at the origin…
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4IV. Publication and sale
Art. 384Art. 384 1 The publisher is obliged to publish the work in an appropriate format without abridgment, addition or alteration, to take reasonable steps to publicise the work and to devote the customary resources in order…
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4V. Improvements and corrections
Art. 385Art. 385 1 The author retains the right to correct and improve his work provided this does not prejudice the interests or increase the liability of the publisher, but must compensate the publisher for any unforeseen cos…
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4VI. Collected and separate editions
Art. 386Art. 386 1 The right to publish different works by the same author separately does not entail the right to publish them together in collected edition. 2 Similarly, the right to publish the complete works of an author or…
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4VII. Translation rights
Art. 387Art. 387 Unless otherwise agreed with the publisher, the originator retains the exclusive right to commission a translation of the work.
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4VIII. Author’s remuneration
51. Amount
Art. 388Art. 388 1 The originator is deemed entitled to remuneration where in the circumstances the presumption is that publication of the work would necessarily involve such remuneration. 2 The amount thereof is fixed by the c…
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52. Due date for payment, record of sales and complimentary copies
Art. 389Art. 389 1 The remuneration is payable as soon as the complete work or, in the case of works appearing in separate parts (volumes, fascicles, issues), each part thereof is printed and ready for distribution. 2 Where the…
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3C. Termination
4I. Destruction of the work
Art. 390Art. 390 1 If the work is destroyed by chance after delivery to the publisher, he remains obliged to pay the author’s remuneration. 2 If the author has a second copy of the destroyed work, he must make it available to t…
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4II. Destruction of the edition
Art. 391Art. 391 1 If an edition already produced by the publisher is partly or entirely destroyed by chance prior to its distribution, the publisher is entitled to replace the destroyed copies at his own expense without giving…
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4III. Grounds for termination pertaining to the person of the author or the publisher
Art. 392Art. 392 1 The contract is extinguished on the death or incapacity of the author before the work is completed or in the event that the author is prevented from completing it through no fault of his own. 2 By way of exce…
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3D. Work on a project originated by the publisher
Art. 393Art. 393 1 Where one or more authors accept a commission to work on a project originated by a publisher, they are entitled only to the agreed remuneration. 2 The publisher owns the copyright to the work as a whole.
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2Title Thirteen: The Mandate
3Section One: The Simple Mandate
4A. Definition
Art. 394Art. 394 1 A mandate is a contract whereby the mandatee undertakes to conduct certain business or provide certain services in accordance with the terms of the contract. 2 Contracts for the provision of work or services…
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4B. Creation
Art. 395Art. 395 A mandate is deemed to have been accepted where it has not been declined immediately and relates to business which is conducted by the mandatee by official appointment or on a professional basis or for which he…
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4C. Effects
5I. Scope of the mandate
Art. 396Art. 396 1 Unless expressly defined, the scope of the mandate is determined by the nature of the business to which it relates. 2 In particular, it includes the authority to carry out such transactions as are required fo…
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5II. Obligations of the mandatee
61. Compliance with instructions
Art. 397Art. 397 1 A mandatee who has received instructions from the mandator on how to conduct the business entrusted to him may deviate from them only to the extent that circumstances prevent him from obtaining the mandator’s…
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61bis. Duty to notify
Art. 397aArt. 397a Inserted by Annex No 10 of the FA of 19 Dec. 2008 (Adult Protection, Law of Persons and Law of Children), in force since 1 Jan. 2013 (AS 2011 725; BBl 2006 7001). Inserted by Annex No 10 of the FA of 19 Dec. 2…
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62. Faithful performance
7a. In general
Art. 398Art. 398 1 The mandatee generally has the same duty of care as the employee in an employment relationship. Amended by No II Art. 1 No 7 of the FA of 25 June 1971, in force since 1 Jan. 1972 (AS 1971 1465; BBl 1967 II 24…
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7b. In the event of delegation
Art. 399Art. 399 1 A mandatee who has delegated the business entrusted to him to a third party without authority is liable for the latter’s actions as if they were his own. 2 Where such delegation was authorised, he is liable o…
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63. Account of agency
Art. 400Art. 400 1 The mandatee is obliged at the mandator’s request, which may be made at any time, to give an account of his activities under the mandate and to return anything received for whatever reason as a result of such…
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64. Transfer of acquired rights
Art. 401Art. 401 1 Where the mandatee acting on the mandator’s behalf acquires claims in his own name against third parties, such claims pass to the mandator provided he has fulfilled all his obligations towards the mandatee un…
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5III. Obligations of the mandator
Art. 402Art. 402 1 The mandator is obliged to reimburse the mandatee for expenses incurred in the proper performance of the mandate plus interest and to release him from obligations entered into. 2 The mandator must also compen…
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5IV. Liability of joint mandators and mandatees
Art. 403Art. 403 1 Where several persons conclude a mandate as mandators, they are jointly and severally liable to the mandatee. 2 Where several persons conclude a mandate as mandatees, they are jointly and severally liable to…
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4D. Termination
5I. Grounds
61. Revocation, termination
Art. 404Art. 404 1 The mandate may be revoked or terminated at any time by either party. 2 However, a party doing so at an inopportune juncture must compensate the other for any resultant damage.
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62. Death, incapacity, bankruptcy
Art. 405Art. 405 1 Unless otherwise agreed or implied by the nature of the business, the mandate ends on loss of capacity to act, bankruptcy, death or declaration of presumed death of the mandator or the mandatee. Amended by An…
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5II. Effects of extinction of the contract
Art. 406Art. 406 Actions taken by the mandatee before he became aware of the termination of the mandate are binding on the mandator or his heir as if the contract had still been in force.
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3Section Onebis :The Marriage or Partnership Brokerage Mandate
4A. Definition and applicable law
Art. 406aArt. 406a 1 A person accepting a mandate to broker a marriage or partnership undertakes, in exchange for remuneration, to introduce the mandator to persons who are potential spouses or long-term partners. 2 The provisio…
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4B. Introduction of or to foreign nationals
5I. Costs of return journey
Art. 406bArt. 406b 1 Where the person to be introduced travels from or to a foreign destination, the mandatee must reimburse the costs of the return journey if this takes place within six months of arrival. 2 Where the local aut…
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5II. Duty to obtain a licence
Art. 406cArt. 406c 1 Professional marriage and partnership brokerage activities involving foreign nationals require a licence issued by the authority designated by cantonal law and are regulated by that authority. 2 The Federal…
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4C. Form and content
Art. 406dArt. 406d The contract must be done in writing and contain the following information: 1. the name and address of each party; 2. the number and nature of the services that the mandatee undertakes to provide and the amoun…
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4D. Entry into force, revocation, notice of termination
Art. 406eArt. 406e Amended by No I of the FA of 19 June 2015 (Revision of the right of revocation), in force since 1 Jan. 2016 (AS 2015 4107; BBl 2014 921 2993). Amended by No I of the FA of 19 June 2015 (Revision of the right o…
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4E. ...
Art. 406fArt. 406f Repealed by No I of the FA of 19 June 2015 (Revision of the right of revocation), with effect from 1 Jan. 2016 (AS 2015 4107; BBl 2014 921 2993). Repealed by No I of the FA of 19 June 2015 (Revision of the rig…
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4F. Information and data protection
Art. 406gArt. 406g 1 Before the contract is signed and throughout its duration, the mandatee must inform the mandator of any particular difficulties pertaining to the latter’s personal circumstances that might arise in the perfo…
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4G. Reduction
Art. 406hArt. 406h Where excessive remuneration or expenses have been agreed, the mandator may apply to the court to reduce these to an appropriate amount.
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3Section Two: The Letter of Credit and the Loan Authorisation
4A. Letter of credit
Art. 407Art. 407 1 The provisions governing mandates and payment instructions are applicable to letters of credit in which the principal instructs the addressee to pay a specified person the sums requested by the latter, whethe…
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4B. Loan authorisation
5I. Definition and form
Art. 408Art. 408 1 Where a person has received and accepted a mandate to grant or renew a loan to a third party in his own name and for his own account but on the authorisation of the mandator, the mandator is liable for the pa…
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5II. Incapacity of payee to enter into a contract
Art. 409Art. 409 The mandator may not plead as defence against the mandatee the fact that the payee did not have personal capacity to enter into the contract.
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5III. Payment extension granted on own authority
Art. 410Art. 410 The mandator ceases to be liable for the obligation where the mandatee has on his own authority granted the payee an extension of the term of payment or has neglected to proceed against him as instructed by the…
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5IV. Borrower and principal
Art. 411Art. 411 The legal relationship between the mandator and the third party granted a loan is subject to the provisions governing the legal relationship between the surety and the principal debtor.
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3Section Three: The Brokerage Contract
4A. Definition and form
Art. 412Art. 412 1 A brokerage contract is a contract whereby the broker is given the mandate to arrange an opportunity to conclude a contract or to facilitate the conclusion of a contract in exchange for a fee. 2 The brokerage…
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4B. Broker’s fee
5I. When due
Art. 413Art. 413 1 The broker’s fee becomes payable as soon as the information he has given or the intermediary activities he has carried out result in the conclusion of the contract. 2 Where the contract is concluded subject t…
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5II. Fixing the fee
Art. 414Art. 414 Where the amount of remuneration is not stipulated, the parties are deemed to have agreed a fee determined by the tariff of fees, where such exists, and otherwise by custom.
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5III. Forfeiture
Art. 415Art. 415 Where the broker acts in the interests of a third party in breach of the contract or procures a promise of remuneration from such party in circumstances tantamount to bad faith, he forfeits his right to a fee a…
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5IV. ...
Art. 416Art. 416 Repealed by Annex No 2 to the FA of 26 June 1998, with effect from 1 Jan. 2000 (AS 1999 1118; BBl 1996 I 1). Repealed by Annex No 2 to the FA of 26 June 1998, with effect from 1 Jan. 2000 (AS 1999 1118; BBl 199…
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5V. Excessive fees
Art. 417Art. 417 Amended by No II, Art. 1, No 8 of the FA of 25 June 1971, in force since 1 Jan. 1972 (AS 1971 1465; BBl 1967 II 241). See also the Final and Transitional Provisions of Title X, at the end of this Code. Amended…
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4C. Reservation of cantonal law
Art. 418Art. 418 The cantons reserve the right to enact special regulations governing stockbrokers, official brokers and employment agencies.
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3Section Four: The Agency Contract
4A. General
5I. Definition
Art. 418aArt. 418a 1 An agent is a person who undertakes to act on a continuous basis as an intermediary for one or more principals in facilitating or concluding transactions on their behalf and for their account without enterin…
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5II. Applicable law
Art. 418bArt. 418b 1 The provisions governing brokerage contracts apply by way of supplement to agents acting as intermediaries and those governing commissions apply by way of supplement to agents acting as proxies. 2 ... Repeal…
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4B. Obligations of the agent
5I. General and del credere
Art. 418cArt. 418c 1 The agent must safeguard the principal’s interests with the diligence of a prudent businessman. 2 Except where otherwise agreed in writing, the agent may also act for other principals. 3 He may assume liabil…
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5II. Duty of discretion and prohibition of competition
Art. 418dArt. 418d 1 The agent must not exploit or reveal the principal’s trade secrets with which he has been entrusted or of which he became aware by reason of the agency relationship even after the end of the commercial agenc…
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4C. Powers of representation
Art. 418eArt. 418e 1 The agent is considered to be authorised only to facilitate transactions, to receive notices of defects and other declarations whereby clients exercise or reserve their rights in respect of defective perform…
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4D. Obligations of the principal
5I. In general
Art. 418fArt. 418f 1 The principal must do everything in his power to enable the agent to perform his activities successfully. In particular, he must furnish the agent with the necessary documentation. 2 He must notify the agent…
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5II. Commission
61. On business facilitated and concluded
7a. Scope and entitlement
Art. 418gArt. 418g 1 The agent is entitled to the agreed or customary commercial agent’s commission or sales commission on all transactions that he facilitated or concluded during the agency relationship and, unless otherwise ag…
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7b. Lapse of entitlement
Art. 418hArt. 418h 1 The agent’s entitlement to commission lapses subsequently where the execution of a concluded transaction is prevented for reasons not attributable to the principal. 2 By contrast, the agent is not entitled t…
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7c. Due date
Art. 418iArt. 418i Unless otherwise provided by agreement or custom, the commission falls due at the end of the calendar half-year in which the transaction was concluded, whereas in insurance business the commission falls due wh…
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7d. Statement of commission
Art. 418kArt. 418k 1 Where the agent is not obliged by written agreement to draw up a statement of commission, the principal must provide him with a written statement as at each due date indicating the transactions on which comm…
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62. Collection commission
Art. 418lArt. 418l 1 Unless otherwise provided by agreement or custom, the agent is entitled to a collection commission on any amounts he collects and delivers to the principal in accordance with the latter’s instructions. 2 At…
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5III. Inability to work
Art. 418mArt. 418m 1 The principal is obliged to pay the agent appropriate compensation if, in breach of his legal or contractual obligations, he is at fault in preventing the agent from earning the volume of commission that was…
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5IV. Costs and expenses
Art. 418nArt. 418n 1 Unless otherwise provided by agreement or custom, the agent is not entitled to reimbursement of costs and expenses incurred in the normal performance of his duties, but is entitled to reimbursement of those…
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5V. Special lien
Art. 418oArt. 418o 1 By way of securing claims due to him under the commercial agency relationship and, in the event that the principal becomes insolvent, claims that are not yet due, the agent has a special lien on chattels and…
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4E. Termination
5I. Expiry of duration
Art. 418pArt. 418p 1 Where the commercial agency contract was concluded for a fixed term or its duration is limited by virtue of its purpose, it ends without notice on expiry of that term. 2 Where a fixed-term commercial agency…
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5II. Notice of termination
61. In general
Art. 418qArt. 418q 1 Where the commercial agency contract was not concluded for a fixed term and its duration is not limited by virtue of its purpose, it may be terminated by either party during the first year of the contract by…
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62. For good cause
Art. 418rArt. 418r 1 The principal and the agent may at any time terminate the contract with immediate effect for good cause. 2 The provisions governing service contracts apply mutatis mutandis.
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5III. Death, incapacity, bankruptcy
Art. 418sArt. 418s 1 The agency relationship ends on the death or incapacity of the agent or the bankruptcy of the principal. 2 Where in essence the agency relationship was entered into with the principal in person, it ends on h…
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5IV. Claims of the agent
61. Commission
Art. 418tArt. 418t 1 Unless otherwise provided by agreement or custom, the agent is entitled to commission on orders subsequently placed by a client acquired by him during the agency relationship only if such orders are placed b…
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62. Compensation for clientele
Art. 418uArt. 418u 1 Where the agent’s activities have resulted in a substantial expansion of the principal’s clientele and considerable benefits accrue even after the end of the agency relationship to the principal or his legal…
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5V. Duty of restitution
Art. 418vArt. 418v By the time the agency relationship ends, each contracting party must return to the other everything received from him or from third parties for his account during the relationship. The contracting parties’ ri…
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2Title Fourteen: Agency without Authority
3A. Rights and obligations of the agent
4I. Manner of execution
Art. 419Art. 419 Any person who conducts the business of another without authorisation is obliged to do so in accordance with his best interests and presumed intention.
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4II. Liability of the agent in general
Art. 420Art. 420 1 The agent is liable for negligence. 2 However, where the agent acted in order to avert imminent damage to the principal, his liability is judged more leniently. 3 Where agency activities are carried out again…
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4III. Liability of agents lacking capacity to enter into contracts
Art. 421Art. 421 1 Where the agent lacked the capacity to enter into contractual commitments, he is liable for his agency activities only to the extent that he is enriched or alienated the enrichment in bad faith. 2 Further lia…
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3B. Position of the principal
4I. Agency in the principal’s best interests
Art. 422Art. 422 1 Where agency activities were in the best interests of the principal, he is obliged to reimburse the agent for all expenses that were necessary or useful and appropriate in the circumstances plus interest, to…
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4II. Business conducted in the agent’s interests
Art. 423Art. 423 1 Where agency activities were not carried out with the best interests of the principal in mind, he is nonetheless entitled to appropriate any resulting benefits. 2 The principal is obliged to compensate the ag…
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4III. Approval of agency activities
Art. 424Art. 424 Where the agent’s actions are subsequently approved by the principal, the provisions governing mandates become applicable.
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2Title Fifteen: The Commission Contract
3A. Buying and selling commission
4I. Definition
Art. 425Art. 425 1 A buying or selling commission agent is a person who, in return for a commission, buys or sells chattels or securities in his own name but for the account of another (the principal). 2 The provisions governin…
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4II. Obligations of the commission agent
51. Duty of notification, insurance
Art. 426Art. 426 1 The commission agent must keep the principal informed and in particular must notify him immediately of the performance of the commission contract. 2 He is obliged to insure the goods on commission only where…
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52. Treatment of goods on commission
Art. 427Art. 427 1 Where the goods for sale on commission are evidently defective, the commission agent must safeguard the rights of recourse against the carrier, secure evidence of the defective condition of the goods, preserv…
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53. Pricing by the principal
Art. 428Art. 428 1 Where the commission agent sells goods below the minimum price instructed, he is liable to the principal for the difference unless he can prove that such sale averted damage that the principal would otherwise…
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54. Advances and loans to third parties
Art. 429Art. 429 1 A commission agent who makes cash advances or extends credit to a third party without the consent of the principal does so at his own risk. 2 However, where sale on credit is the customary commercial practice…
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55. Del credere
Art. 430Art. 430 1 Except where he extends credit without authority, the commission agent is liable for the debtor’s payment or performance of other obligations only to the extent that he has expressly assumed such liability or…
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4III. Rights of the commission agent
51. Reimbursement of advances and expenses
Art. 431Art. 431 1 The commission agent is entitled to reimbursement of all advances, expenses and other costs incurred on the principal’s behalf plus interest on all such amounts. 2 He may also claim remuneration for storage a…
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52. Commission
6a. Entitlement
Art. 432Art. 432 1 The commission agent is entitled to commission on execution of the transaction or failure to execute it for a reason attributable to the principal. 2 In the case of transactions that could not be executed for…
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6b. Forfeiture and conversion into transaction for own account
Art. 433Art. 433 1 The commission agent forfeits his right to commission if he has acted improperly towards the principal and in particular if he has secured an inflated purchase price or a deflated sale price. 2 Moreover, in b…
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53. Special lien
Art. 434Art. 434 The commission agent has a special lien in respect of the goods on commission and the sale proceeds.
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54. Sale of goods at auction
Art. 435Art. 435 1 Where the goods on commission remain unsold or the order to sell is withdrawn and the principal fails to take them back or otherwise dispose of them within a reasonable time, the commission agent may apply to…
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55. Agent acting for his own account
6a. Pricing and commission
Art. 436Art. 436 1 Unless otherwise instructed by the principal, a commission agent instructed to buy or sell goods, bills of exchange or other securities with a quoted exchange or market price is entitled, in his own capacity…
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6b. Presumption of trading for own account
Art. 437Art. 437 Where the commission agent is permitted to act for his own account and he notifies the principal that the instruction has been executed without naming another person as buyer or seller, the presumption is that…
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6c. Lapse of right to trade for own account
Art. 438Art. 438 The commission agent is not permitted to act as buyer or seller if the principal has withdrawn his mandate and the notice of withdrawal reached the commission agent before he dispatched the notice of execution.
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3B. Forwarding contract
Art. 439Art. 439 A forwarding agent or carrier who in return for payment undertakes to carry or forward goods for the consignor’s account but in his own name is regarded as a commission agent but is subject to the provisions go…
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2Title Sixteen: The Contract of Carriage
3A. Definition
Art. 440Art. 440 1 A carrier is a person who undertakes to transport goods in return for payment (freight charge). 2 The provisions governing mandates apply to contracts of carriage unless otherwise provided in this Title.
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3B. Effects
4I. Obligations of the carrier
51. Required information
Art. 441Art. 441 1 The consignor must give the carrier precise details of the address of the consignee and the place of delivery, the number, type of packaging, weight and content of packages, the delivery date and the transpor…
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52. Packaging
Art. 442Art. 442 1 The consignor ensures that the goods are properly packaged. 2 He is liable for the consequences of defects in packaging that are not externally apparent. 3 By contrast, the carrier is liable for the consequen…
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53. Power of disposal over freight
Art. 443Art. 443 1 While the goods are in the carrier’s possession, the consignor has the right to reclaim them against compensation for the carrier for expenses incurred and any detriment resulting from their repossession, exc…
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4II. Position of the carrier
51. Treatment of freight
6a. Delivery not possible
Art. 444Art. 444 1 Where the goods are rejected, the associated claims remain unpaid or the consignee cannot be contacted, the carrier must inform the consignor and in the interim place the goods in storage or deposit them with…
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6b. Sale
Art. 445Art. 445 1 Where the goods are likely to deteriorate rapidly or their probable value does not cover the associated costs, the carrier must without delay arrange for official confirmation of that fact and may arrange for…
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6c. Liability
Art. 446Art. 446 When exercising the rights conferred on him with regard to the handling of the goods, the carrier must safeguard the interests of their owner to the best of his ability and is liable in damages for any fault on…
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52. Liability of the carrier
6a. Loss or destruction of the goods
Art. 447Art. 447 1 If the goods are lost or destroyed, the carrier must compensate their full value unless he can prove that the loss or destruction resulted from the nature of the goods or through the fault of the consignor or…
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6b. Delay, damage, partial destruction
Art. 448Art. 448 1 Subject to the same conditions and reservations as apply to the loss or destruction of goods, the carrier is liable for any damage resulting from late delivery, damage in transit or the partial destruction of…
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6c. Liability for sub-contractors
Art. 449Art. 449 The carrier is liable for all accidents and errors occurring during the carriage of goods, regardless of whether he transports them to the final destination or sub-contracts the task to another carrier, subject…
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53. Duty of notification
Art. 450Art. 450 The carrier must notify the consignee immediately on arrival of the goods.
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54. Lien
Art. 451Art. 451 1 Where the consignee disputes claims attaching to the goods, he may demand delivery only if the disputed amount is deposited with the court. 2 The deposited amount replaces the goods with regard to the carrier…
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55. Forfeiture of liability claims
Art. 452Art. 452 1 Unconditional acceptance of the goods and payment of the freight charge extinguish all claims against the carrier, except in cases of deliberate deceit or gross negligence. 2 Furthermore, the carrier remains…
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56. Procedure
Art. 453Art. 453 1 In any dispute, the competent authority at the place where the goods are located may, at the request of either party, order that the goods be deposited with a third party or, where necessary, sold after their…
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57. Prescription of actions for damages
Art. 454Art. 454 1 Actions for damages against the carrier prescribe one year after the scheduled delivery date in the case of destruction, loss or delay and one year after the date on which the goods were delivered to the cons…
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3C. State-owned and licensed carriers
Art. 455Art. 455 1 Carriers operating under state licence are not empowered to exclude or restrict in advance the application of the provisions governing the carrier’s liability to their own benefit by means of special agreemen…
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3D. Use of state transport facilities
Art. 456Art. 456 1 Any carrier or forwarding agent who uses a state transport facility to perform carriage obligations he has assumed or who assists in the carriage of goods by such a facility is subject to the special provisio…
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3E. Liability of the forwarding agent
Art. 457Art. 457 A forwarding agent who uses a state transport facility in order to perform obligations under a contract of carriage may not deny liability on grounds of insufficient right of recourse where right of recourse wa…
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2Title Seventeen: Registered Power of Attorney and other Forms of Commercial Agency
3A. Registered power of attorney
4I. Definition and conferral
Art. 458Art. 458 1 A registered attorney is a person who has been expressly or tacitly granted the authority to conduct operations and to sign per procuration on behalf of a trading, manufacturing or other commercial business b…
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4II. Scope of authority
Art. 459Art. 459 1 In dealings with bona fide third parties, the registered attorney is deemed authorised to commit the owner of the business by signing bills of exchange and to carry out on his behalf all types of transaction…
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4III. Restrictions
Art. 460Art. 460 1 The registered power of attorney may be limited to the business affairs of a specific branch. 2 It may be conferred on two or more persons collectively (joint power of attorney) such that the signature of one…
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4IV. Withdrawal
Art. 461Art. 461 1 Any withdrawal of the power of attorney must be entered in the commercial register, even where no entry was made of its conferral. 2 As long as such withdrawal has not been registered and published, the regis…
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3B. Other forms of commercial agency
Art. 462Art. 462 1 Where the owner of a trading, manufacturing or other commercial establishment appoints a person to represent him in managing the affairs of the business as a whole or in carrying out certain transactions on b…
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3C. ...
Art. 463Art. 463 Repealed by No II Art. 6 No 1 of the FA of 25 June 1971, with effect from 1 Jan. 1972 (AS 1971 1465; BBl 1967 II 241). See also the Final and Transitional Provisions of Title X, at the end of this Code. Repeale…
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3D. Prohibition of competition
Art. 464Art. 464 1 A registered attorney or commercial agent appointed to manage the affairs of the business as a whole or employed by the owner of the business may not without the owner’s consent engage in transactions for his…
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3E. Extinction of power of attorney and other forms of commercial agency
Art. 465Art. 465 1 The registered power of attorney and authority to act as commercial agent may be revoked at any time without prejudice to rights accruing to the parties concerned under any existing individual contract of emp…
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2Title Eighteen: The Payment Instruction
3A. Definition
Art. 466Art. 466 By means of a payment instruction, the recipient of the instruction (agent) is authorised to transfer money, securities or other fungibles for the account of the party issuing the instruction (principal) to the…
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3B. Effects
4I. Relations between principal and payee
Art. 467Art. 467 1 Where the purpose of the payment instruction is to redeem a debt owed by the principal to the payee, the debt is redeemed only once the agent has made the transfer. 2 However, where the payee has accepted a p…
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4II. Obligations of the agent
Art. 468Art. 468 1 An agent who notifies the payee that he accepts the payment instruction unreservedly is obliged to pay the payee and may raise against him only such objections as arise from their personal relationship or fro…
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4III. Duty to notify non-payment
Art. 469Art. 469 Where the agent refuses to make the payment called for by the payee or declares in advance that he will not make it, the payee must notify the principal immediately in order to avoid liability in damages.
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3C. Revocation
Art. 470Art. 470 1 The principal may revoke the payment instruction as against the payee unless he issued it in order to redeem a debt to the payee or otherwise in favour of the latter. 2 He may revoke it as against the agent p…
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3D. Payment instructions relating to securities
Art. 471Art. 471 1 The provisions of this Title apply to payment instructions made out to the bearers of negotiable securities on the premise that each such bearer is considered to be the payee in relation to the agent, whereas…
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2Title Nineteen: The Contract of Bailment
3A. Bailment in general
4I. Definition
Art. 472Art. 472 1 A contract of bailment is a contract in which the bailee undertakes to take receipt of a chattel entrusted to him by the bailor and to keep it in a safe place. 2 The bailee may claim remuneration only where t…
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4II. Obligations of the bailor
Art. 473Art. 473 1 The bailor must reimburse the bailee for expenses incurred in performance of the contract. 2 He is liable to the bailee for damage caused by the bailment unless he can prove that such damage occurred through…
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4III. Obligations of the bailee
51. Prohibition of use
Art. 474Art. 474 1 The bailee may not use the deposited chattel without the bailor’s consent. 2 If he does, he must pay the bailor adequate compensation and is liable for any chance occurrence unless he can prove that such occu…
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52. Return
6a. Rights of the bailor
Art. 475Art. 475 1 The bailor may reclaim the bailed chattel together with any growth or accrual thereto at any time, even where a fixed term was agreed for the bailment. 2 However, the bailor must reimburse the bailee for expe…
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6b. Rights of the bailee
Art. 476Art. 476 1 The bailee may return the bailed chattel before expiry of the stipulated term only where unforeseen circumstances render the bailee unable to keep the chattel safely or without detriment to himself. 2 Where n…
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6c. Place of return
Art. 477Art. 477 The bailed chattel is returned at the risk and expense of the bailor at the same place where it was to be kept.
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53. Liability of joint bailees
Art. 478Art. 478 Where several bailees have jointly received a chattel in bailment, they are jointly and severally liable.
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54. Third-party rights of title
Art. 479Art. 479 1 If a third party claims title to the bailed chattel, the bailee remains obliged to return it to the bailor unless it has been attached by court order or the third party has brought action to establish title a…
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4IV. Official receiver
Art. 480Art. 480 Where two or more persons, with a view to protecting their rights, deposit an object whose legal status is disputed or uncertain in bailment with a third party (official receiver), the latter may return it only…
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3B. Bailment of fungibles
Art. 481Art. 481 1 Where money is deposited with the express or tacit agreement that the bailee is not obliged to return precisely the same notes and coin but merely the same sum of money, all attendant risks and benefits pass…
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3C. Warehousing business
4I. Right to issue documents of title to goods
Art. 482Art. 482 1 A warehouse keeper who publicly offers warehousing services may apply to the competent authority for the right to issue documents of title to the goods kept in storage. 2 These documents of title to goods are…
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4II. Warehouse keeper’s duty of safe-keeping
Art. 483Art. 483 1 A warehouse keeper has the same duty of care in relation to stored goods as a commission agent. 2 Where feasible, he must inform the bailor of any changes in the condition of the goods that call for further m…
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4III. Intermingling of stored goods
Art. 484Art. 484 1 A warehouse keeper may mix fungibles with other items of the same kind and quality only if expressly authorised so to do. 2 Each bailor may reclaim a number corresponding to his deposit from any goods thus in…
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4IV. Rights of the warehouse keeper
Art. 485Art. 485 1 The warehouse keeper is entitled to the agreed or customary warehouse fee and to reimbursement of all expenses not resulting from the actual storage of the goods (freight charges, customs duties, repairs). 2…
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4V. Return of the goods
Art. 486Art. 486 1 The warehouse keeper has the same obligation to return the goods as an ordinary bailee, except that he remains bound to observe the contractual storage duration even where an ordinary bailee would be entitled…
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3D. Inns, hotels and stables
4I. Liability of hoteliers
51. Conditions and scope
Art. 487Art. 487 1 Innkeepers and hoteliers who provide accommodation for persons not known to them are liable for any damage, destruction or misappropriation of personal effects brought onto the premises by their guests unless…
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52. Specific liability for valuables
Art. 488Art. 488 1 Where valuables, large sums of money or securities are not deposited with the innkeeper or hotelier, the latter is only liable for them if he or his staff are at fault. 2 Where he accepts or declines the depo…
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53. End of liability
Art. 489Art. 489 1 The guest’s claims are forfeited if he fails to report any damage to the innkeeper or hotelier immediately. 2 The innkeeper or hotelier may not exempt himself from liability by posting disclaimer notices on t…
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4II. Liability of stable owners
Art. 490Art. 490 1 Owners of stables are liable for any damage, destruction or misappropriation of animals, vehicles and their appurtenances entrusted to or otherwise received by them or by their staff unless they can prove tha…
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4III. Lien
Art. 491Art. 491 1 Innkeepers, hoteliers and stable owners have a lien on the animals and objects brought onto their premises as security for their claims in connection with accommodation and storage. 2 The provisions governing…
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2Title Twenty: The Contract of Surety
3A. Requirements
4I. Definition
Art. 492Art. 492 1 Under a contract of surety, the surety undertakes as against the creditor of the principal debtor to vouch for performance of the obligation. 2 A contract of surety presupposes the existence of a valid primar…
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4II. Form
Art. 493Art. 493 1 The contract of surety is valid only where the surety makes a written declaration and indicates in the surety bond the maximum amount for which he is liable. 2 Where the surety is a natural person, his declar…
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4III. Spouse’s consent
Art. 494Art. 494 1 A married person may validly stand as surety only with the written consent of his spouse given in advance or at the latest simultaneously, unless the spouses are separated by court judgment. 2 ... Repealed by…
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3B. Substance
4I. Particularities of different types of surety
51. Simple surety
Art. 495Art. 495 1 The creditor may resort to a simple surety only if, after the surety was provided, the debtor is declared bankrupt or obtains a debt restructuring moratorium, or is the object of debt enforcement proceedings…
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52. Joint and several surety
Art. 496Art. 496 1 Where a person stands surety for an obligation by appending the words “joint and several” or an equivalent phrase, the creditor may resort to him before suing the principal debtor and before realising propert…
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53. Co-surety
Art. 497Art. 497 1 Where two or more persons stand surety for a single divisible principal obligation, each of them is liable as simple surety for his share and as collateral surety for the shares of the others. 2 Where they ha…
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54. Collateral surety and counter-surety
Art. 498Art. 498 1 A collateral surety who stands surety to the creditor for performance of the obligation assumed by the primary surety is liable together with the latter in the same way as a simple surety is liable with the p…
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4II. Common provisions
51. Relationship between the surety and the creditor
6a. Scope of liability
Art. 499Art. 499 1 In all cases, the surety’s liability is limited to the maximum amount indicated in the surety bond. 2 Unless otherwise agreed, he is liable up to this limit for: 1. the amount of the principal obligation, inc…
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6b. Reduction of liability by court order
Art. 500Art. 500 1 Unless otherwise agreed at the outset or by subsequent amendment, the amount for which a surety who is a natural person is liable decreases every year by three per cent or, where the claim is secured by mortg…
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6c. Resort to the surety
Art. 501Art. 501 1 The creditor may not apply to the surety in respect of the principal obligation before the date fixed for its payment even if such date is brought forward following the principal debtor’s bankruptcy. 2 Under…
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6d. Defences
Art. 502Art. 502 1 The surety is entitled and obliged to plead against the creditor all defences open to the principal debtor or his heirs which are not based on the insolvency of the principal debtor. Suretyship for obligation…
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6e. Creditor’s duty of diligence and duty to release documents and pledges
Art. 503Art. 503 1 Where the liens and other securities and preferential rights furnished when the contract of surety is concluded or subsequently obtained from the principal debtor for the specific purpose of securing the clai…
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6f. Right to demand acceptance of payment
Art. 504Art. 504 1 As soon as the principal obligation falls due, even as a result of the bankruptcy of the principal debtor, the surety may at any time demand that the creditor accept satisfaction from him. Where several perso…
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6g. Creditor’s duty to notify and to register his claim in bankruptcy and composition proceedings
Art. 505Art. 505 1 Where the debtor is six months in arrears in the payment of capital, interest accrued over half a year or an annual repayment, the creditor must notify the surety. The creditor must inform the surety of the s…
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52. Relationship between surety and principal debtor
6a. Right to security and release
Art. 506Art. 506 The surety may require that the principal debtor furnish security and demand his release from liability once the principal obligation falls due: 1. where the principal debtor breaches the agreements made with t…
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6b. Surety’s right of recourse
7aa. In general
Art. 507Art. 507 1 The surety is subrogated to the creditor’s rights to the extent that he has satisfied him. The surety may exercise these as soon as the obligation falls due. 2 However, unless otherwise agreed, he is subrogat…
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7bb. Surety’s duty to notify
Art. 508Art. 508 1 Where the surety pays the principal obligation in full or in part, he must notify the principal debtor. 2 If he fails to do so and the principal debtor pays it again because he was not and could not be expect…
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3C. Termination of the contract of surety
4I. By operation of law
Art. 509Art. 509 1 The surety is released as soon as the principal obligation is extinguished for whatever reason. 2 Where the same person is both principal debtor and surety, the creditor retains the special privileges conferr…
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4II. Fixed-term contract of surety; revocation
Art. 510Art. 510 1 A contract of surety for a future obligation may be revoked by the surety at any time by means of a written declaration to the creditor, provided that the obligation has not yet arisen, where the principal de…
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4III. Open-ended contract of surety
Art. 511Art. 511 1 Where a contract of surety is concluded for an indefinite term, once the principal debtor’s obligation falls due the surety may, where action may be brought only on such conditions, request that the creditor…
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4IV. Contracts of surety for official and civil service obligations
Art. 512Art. 512 1 A contract of surety for the performance of official obligations concluded for an indefinite term may be terminated subject to one year’s notice expiring at the end of a term of office. 2 Where there is no fi…
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2Title Twenty-One: Gambling and Betting
3A. No actionable claim
Art. 513Art. 513 1 Gambling and betting do not give rise to a claim. 2 The same applies to advances or loans knowingly made for the purposes of gambling or betting and to contracts for difference and transactions for delivery o…
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3B. Debentures and voluntary payment
Art. 514Art. 514 1 A promissory note or bill of exchange signed by the gambler or bettor to cover the sum gambled or bet may not be enforced even following delivery of the instrument, subject to the rights that securities confe…
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3C. Lotteries and prize draws
Art. 515Art. 515 1 Lotteries and prize draws give rise to a claim only where they have been approved by the competent authority. 2 In the absence of such approval, the claim is treated as a gambling claim. 3 Lotteries or draws…
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3D. Gambling in casinos, loans from casinos
Art. 515aArt. 515a Inserted by Annex No 5 to the Gambling Act of 18 Dec. 1998, in force since 1 April 2000 (AS 2000 677; BBl 1997 III 145). Inserted by Annex No 5 to the Gambling Act of 18 Dec. 1998, in force since 1 April 2000…
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2Title Twenty-Two: Life Annuity and the Lifetime Maintenance Agreements
3A. Life annuity agreement
4I. Nature
Art. 516Art. 516 1 A life annuity may be created for the lifetime of the annuitant, the grantor or a third party. 2 In the absence of any specific agreement, the presumption is that it is settled for the life of the annuitant.…
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4II. Formal requirement
4III. Rights of the annuitant
51. Exercise of entitlement
Art. 518Art. 518 1 Unless otherwise agreed, the life annuity is payable every six months in advance. 2 If the person on whom the life annuity is settled dies before the end of the period for which it is payable in advance, the…
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52. Assignment
Art. 519Art. 519 1 Unless otherwise agreed, the life annuitant may assign his rights. 2 ... Repealed by Annex No 6 to the FA of 16 Dec. 1994, with effect from 1 Jan. 1997 (AS 1995 1227; BBl 1991 III 1). Repealed by Annex No 6 t…
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4IV. Life annuities under the law governing insurance policies
Art. 520Art. 520 The provisions of this Code governing life annuity agreements do not apply to life annuity agreements subject to the Federal Act of 2 April 1908SR 221.229.1 on Insurance Policies, with the exception of the prov…
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3B. Lifetime maintenance agreement
4I. Definition
Art. 521Art. 521 1 A lifetime maintenance agreement is a contract in which the beneficiary undertakes to transfer an estate or individual assets to the settlor in return for an undertaking to provide maintenance and care for hi…
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4II. Conclusion
51. Form
Art. 522Art. 522 1 The lifetime maintenance agreement must be done in the same form as a contract of succession, even where it does not involve the designation of an heir. 2 However, where it is concluded with a licensed care h…
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52. Security
Art. 523Art. 523 A beneficiary who transfers land to the other party retains a statutory lien on the property as security for his claims in the same manner as a seller.
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4III. Content
Art. 524Art. 524 1 The beneficiary becomes part of the settlor’s household and the settlor is obliged to provide him such benefits as he might reasonably expect to receive in the light of the value of the assets transferred and…
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4IV. Challenge and reduction
Art. 525Art. 525 1 A lifetime maintenance agreement may be challenged by persons to whom the beneficiary has a legal duty of maintenance where conclusion of the agreement would deprive the beneficiary of the means of dischargin…
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4V. Termination
51. Notice
Art. 526Art. 526 1 The lifetime maintenance agreement may be terminated by either party at any time subject to six months’ notice, where according to the agreement the performance of one party is substantially greater in value…
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52. Unilateral termination
Art. 527Art. 527 1 Either party may unilaterally terminate the agreement where the relationship has become unconscionable as a result of breach of contractual obligations or where other good cause has rendered its continuation…
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53. Termination on the death of the settlor
Art. 528Art. 528 1 On the death of the settlor the beneficiary may within one year insist that the agreement be terminated. 2 In this event, he has a claim against the heirs equivalent to the claim he would have in the event of…
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4VI. Non-transferable claim, asserting claim in the event of bankruptcy and seizure
Art. 529Art. 529 1 The beneficiary’s claim is non-transferable. 2 In the event of the settlor’s bankruptcy, the beneficiary has a claim equivalent to the capital that would be required to acquire from a reputable annuity instit…
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2Title Twenty-Three: The Simple Partnership
3A. Definition
Art. 530Art. 530 1 A partnership is a contractual relationship in which two or more persons agree to combine their efforts or resources in order to achieve a common goal. 2 A simple partnership within the meaning of this Title…
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3B. Relationship between partners
4I. Contributions
Art. 531Art. 531 1 Each partner must make a contribution, which may be money, objects, claims or labour. 2 Unless otherwise agreed, contributions must be equal and of the nature and size required to achieve the partnership’s pu…
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4II. Profit and loss
51. Profit sharing
Art. 532Art. 532 Each partner is obliged to share with his fellow partners any profit which by nature belongs to the partnership.
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52. Participation in profits and losses
Art. 533Art. 533 1 Unless otherwise agreed, each partner has an equal share in profits and losses regardless of the nature and amount of his contribution. 2 Where only the partner’s share in the profits or his share in the loss…
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4III. Partnership resolutions
Art. 534Art. 534 1 Partnership resolutions are made with the consent of all partners. 2 Where the partnership agreement provides for resolutions to be passed by majority vote, it is defined as a numerical majority of the partne…
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4IV. Management of partnership business
Art. 535Art. 535 1 All partners have the right to manage the partnership unless the task is entrusted exclusively to one or more partners or to third parties by agreement or resolution. 2 Where all or several partners have the…
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4V. Liability between partners
51. Prohibition of competition
Art. 536Art. 536 No partner may carry out transactions for his own benefit which thwart or obstruct the purpose of the partnership.
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52. Claims arising from partnership activities
Art. 537Art. 537 1 Where one partner incurs expenses or contracts liabilities in connection with affairs conducted on behalf of the partnership or suffers losses as a direct consequence of his management activities or the intri…
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53. Due diligence
Art. 538Art. 538 1 Each partner must conduct partnership affairs with the diligence and care that he would normally devote to his own affairs. 2 He is liable to the other partners for any damage caused through his fault and may…
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4VI. Withdrawal and restriction of management authority
Art. 539Art. 539 1 The management authority granted to one of the partners under the partnership agreement may not be withdrawn or restricted by the other partners without good cause. 2 Where good cause exists, authority may be…
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4VII. Managing partners and other partners
51. In general
Art. 540Art. 540 1 Unless this Title or the partnership agreement provides otherwise, the relationship between the managing partners and the other partners is subject to the provisions governing mandates. 2 Where a partner who…
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52. Right to information on the affairs of the partnership
Art. 541Art. 541 1 A partner who lacks management authority has the right to receive information on the status of the partnership’s affairs, to inspect its books and documents and to obtain a summary statement of its financial…
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4VIII. Admission of new partners and sub-participation
Art. 542Art. 542 1 No partner may admit a third party into the partnership without the consent of the other partners. 2 Where a partner unilaterally grants a third party a participation in his own share in the partnership or as…
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3C. Relationship between partners and third parties
4I. Representation
Art. 543Art. 543 1 A partner who deals with a third party on behalf of the partnership but in his own name acquires rights and obligations as against that third party in a purely individual capacity. 2 Where a partner deals wit…
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4II. Effects of representation
Art. 544Art. 544 1 Objects, rights in rem and claims transferred to or acquired for the partnership belong jointly to the partners as stipulated in the partnership agreement. 2 Unless otherwise provided in the partnership agree…
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3D. Dissolution
4I. Grounds for dissolution
51. In general
Art. 545Art. 545 1 The partnership is dissolved: 1. where the purpose of the partnership has been achieved or become impossible to achieve; 2. on the death of one of the partners, unless it was previously agreed that the partne…
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52. Partnership of indefinite duration
Art. 546Art. 546 1 Where the partnership was established for an indefinite duration or for the lifetime of one of the partners, each partner may terminate the partnership by giving six months’ notice. 2 Notice must be given in…
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4II. Effect of dissolution on business management
Art. 547Art. 547 1 Where the partnership is dissolved for any reason other than notice of termination, a partner retains his authority to manage the partnership’s business until he learns of the dissolution or ought to have lea…
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4III. Liquidation
51. Treatment of contributions
Art. 548Art. 548 1 Contributions to the partnership do not simply revert to those who made them in the liquidation that the partners must carry out after the partnership is dissolved. 2 However, each partner is entitled to the…
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52. Division of surplus and deficit
Art. 549Art. 549 1 Where a surplus remains after satisfaction of partnership debts, reimbursement of the expenses incurred and advances made by each partner and return of the value of contributions, it is divided as profit amon…
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53. Liquidation method
Art. 550Art. 550 1 The liquidation following the dissolution of the partnership must be carried out jointly by all partners, including those without management authority. 2 However, where the partnership agreement related only…
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4IV. Liability towards third parties
Art. 551Art. 551 The dissolution of the partnership does not affect obligations entered into with third parties.
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1Division Three: Commercial Enterprises and the Cooperative
2Title Twenty-Four: The General Partnership
3Section One: Definition and Formation
4A. Commercial partnerships
Art. 552Art. 552 1 A general partnership is a partnership in which two or more natural persons join together without limiting their liability towards creditors of the partnership in order to operate a trading, manufacturing or…
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4B. Non-commercial partnerships
Art. 553Art. 553 Where a partnership does not operate a commercial business, it does not exist as a general partnership until it has itself entered in the commercial register.
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4C. Entry in the commercial register
5I. Place of registration
Art. 554Art. 554 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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5II. Representation
Art. 555Art. 555 The only details concerning arrangements for representation that are admissible for entry in the commercial register are those which limit it to one partner or specified partners or which provide for representa…
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5III. Formal requirements
Art. 556Art. 556 1 All applications to have facts entered or entries modified must be signed by all the partners in person at the commercial register office or submitted in writing bearing duly authenticated signatures. 2 Partn…
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3Section Two: Relationship between Partners
4A. Freedom of contract, reference to simple partnership
Art. 557Art. 557 1 The relationship between the partners is primarily determined by the partnership agreement. 2 Unless otherwise agreed, the provisions governing simple partnerships apply subject to the modifications set out i…
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4B. Financial reporting
Art. 558Art. 558 1 For each financial year, the profit or loss and each partner’s share thereof are determined on the basis of the annual accounts. Amended by No I 3 of the FA of 23 Dec. 2011 (Financial Reporting Law), in force…
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4C. Entitlement to profit, interest and fees
Art. 559Art. 559 1 Each partner has the right to draw profit, interest and fees for the previous financial year from the partnership’s funds. 2 Where so provided under the agreement, interest and fees may be drawn during the fi…
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4D. Losses
Art. 560Art. 560 1 Where a partner’s share of the capital has been reduced by losses, he remains entitled to his fees and the interest on his reduced share but may receive his share of the profit only when his share of the capi…
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4E. Prohibition of competition
Art. 561Art. 561 Without the consent of the other partners, no partner may engage in the line of business in which the partnership operates either for his own account or for third parties or participate in another business as a…
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3Section Three: Relationship between the Partnership and Third Parties
4A. In general
Art. 562Art. 562 The partnership may acquire rights, assume obligations, sue and be sued in its own name.
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4B. Representation
5I. General principle
Art. 563Art. 563 Unless the commercial register contains an entry to the contrary, bona fide third parties may safely assume that any partner has authority to represent the partnership.
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5II. Scope
Art. 564Art. 564 1 Any partner entitled to represent the partnership is authorised to carry out in the partnership’s name all transactions that serve the partnership’s objects. 2 Any restriction of the scope of such authority t…
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5III. Withdrawal
Art. 565Art. 565 1 Authority to represent the partnership may be withdrawn from a partner for good cause. 2 Where a partner makes a prima facie case for the existence of good cause and there is risk in delay, on his application…
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5IV. Registered power of attorney and commercial agency
Art. 566Art. 566 A registered attorney or commercial agent may be appointed to manage the business of the partnership as a whole only with the consent of all partners authorised to represent the partnership, but such appointmen…
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5V. Transactions and liability in tort
Art. 567Art. 567 1 The partnership acquires rights and assumes obligations by the transactions concluded in its name by any partner authorised to represent it. 2 For such effect to occur, it is sufficient that the intention to…
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4C. Position of creditors
5I. Partners’ liability
Art. 568Art. 568 1 The partners are jointly and severally liable with their entire assets for all obligations of the partnership. 2 Any contrary agreement between partners is void as against third parties. 3 However, a partner…
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5II. Liability of new partners
Art. 569Art. 569 1 A person joining a general partnership is jointly and severally liable with his entire assets together with the other partners even for the partnership’s obligations that predate his accession. 2 Any contrary…
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5III. Insolvency of the partnership
Art. 570Art. 570 1 The partnership’s creditors are entitled to satisfaction from the partnership’s assets to the exclusion of the personal creditors of the individual partners. 2 Partners have no claim as creditors in insolvenc…
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5IV. Insolvency of the partnership and bankruptcy of the partners
Art. 571Art. 571 1 The insolvency of the partnership does not result in the bankruptcy of the partners. 2 Likewise, the bankruptcy of one of the partners does not result in the insolvency of the partnership. 3 The rights of par…
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4D. Position of personal creditors of partners
Art. 572Art. 572 1 The personal creditors of a partner have no rights to the partnership’s assets for the purposes of satisfying or securing their claims. 2 Enforcement proceedings brought by them are limited to the interest, f…
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4E. Set off
Art. 573Art. 573 1 A personal creditor of a partner may not set off his claim against a debt owed to the partnership. 2 Similarly, a partner may not set off a debt to a personal creditor against any debt owed by the creditor to…
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3Section Four: Dissolution and Withdrawal
4A. In general
Art. 574Art. 574 1 The partnership is dissolved by the commencement of insolvency proceedings against it. In other respects, the provisions governing simple partnerships apply to dissolution except where otherwise provided in t…
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4B. Termination by personal creditors
Art. 575Art. 575 1 In the event of the bankruptcy of a partner, the bankruptcy administration may petition for dissolution of the partnership by giving at least six months’ notice even where the partnership was formed for a fix…
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4C. Withdrawal of partners
5I. Agreement
Art. 576Art. 576 Where the partners agreed prior to dissolution that, notwithstanding the withdrawal of one or more partners, the partnership will be continued by the remaining partners, it ceases to exist only for those that l…
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5II. Exclusion by court order
Art. 577Art. 577 Where there is good cause for the dissolution of the partnership that pertains chiefly to the person of one or more partners, at the request of all the other partners the court may rule that the partner or part…
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5III. Exclusion by the other partners
Art. 578Art. 578 Where a partner is declared bankrupt or a creditor who has attached the share in the proceeds of liquidation of a partner indebted to him requests that the partnership be dissolved, the other partners may exclu…
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5IV. In the case of two partners
Art. 579Art. 579 1 Where the partnership comprises two partners only, the partner who has not given rise to any cause for dissolution may, on the same conditions, continue the partnership’s affairs and allocate the other partne…
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5V. Determining the share
Art. 580Art. 580 1 The amount payable to a partner leaving the partnership is determined by agreement. 2 Where no provision is made on this matter in the partnership agreement and the parties cannot reach agreement, the court d…
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5VI. Registration
Art. 581Art. 581 The departure of a partner and the continuation of the partnership’s affairs by one of the partners must be entered in the commercial register.
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4D. Defects in the organisation of the partnership
Art. 581aArt. 581a Inserted by No I 2 of the FA of 17 March 2017 (Commercial Register Law), in force since 1 Jan. 2021 (AS 2020 957; BBl 2015 3617). Inserted by No I 2 of the FA of 17 March 2017 (Commercial Register Law), in for…
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3Section Five: Liquidation
4A. General principle
Art. 582Art. 582 Following its dissolution, the partnership is liquidated in accordance with the following provisions, unless the partners have agreed on an alternative approach or the partnership’s assets are subject to insolv…
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4B. Liquidators
Art. 583Art. 583 1 The liquidation is carried out by the partners who are authorised to represent the partnership, unless they are prevented from so doing for reasons pertaining to their person or the partners agree to appoint…
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4C. Representation of heirs
Art. 584Art. 584 The heirs of a partner must appoint a joint representative for the purpose of the liquidation.
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4D. Rights and obligations of the liquidators
Art. 585Art. 585 1 The liquidators wind up the dissolved partnership’s current business, discharge its obligations, call in all debts receivable and realise its assets as required for the division thereof. 2 They represent the…
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4E. Provisional distribution
Art. 586Art. 586 1 Funds and other assets not required during the liquidation are distributed among the partners on a provisional basis and brought into account against their final share in the proceeds of liquidation. 2 The fu…
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4F. Division
5I. Balance sheet
Art. 587Art. 587 1 The liquidators shall draw up a balance sheet at the beginning of the liquidation. 2 Where the liquidation lasts for an extended period, interim accounts Term in accordance with No I of the FA of 19 June 2020…
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5II. Repayment of capital and distribution of surplus
Art. 588Art. 588 1 Assets remaining after redemption of all partnership debts are used first to repay the capital to the partners and then to pay interest accrued over the liquidation period. 2 Any surplus is distributed among…
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4G. Deletion from the commercial register
Art. 589Art. 589 On completion of the liquidation, the liquidators apply to have the partnership’s business name deleted from the commercial register.
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4H. Archiving of ledgers and other documents
Art. 590Art. 590 1 The ledgers and other documents of the dissolved partnership are kept for ten years commencing on the date of the partnership’s deletion from the commercial register at a location designated by the partners o…
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3Section Six: Prescription
4A. Object and prescriptive period
Art. 591Art. 591 1 Claims of partnership creditors against a partner for partnership debts prescribe five years after the notice of his withdrawal or of the dissolution of the partnership is published in the Swiss Official Gaze…
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4B. Special cases
Art. 592Art. 592 1 The five-year prescriptive period may not be invoked against a creditor seeking satisfaction solely from undivided partnership assets. 2 Where a partner takes over the partnership’s business with all its asse…
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4C. Interruption
Art. 593Art. 593 An interruption of the prescriptive period as against an ongoing partnership or another partner does not interrupt the prescriptive period as against a departing partner.
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2Title Twenty-Five: The Limited Partnership
3Section One: Definition and Formation
4A. Commercial partnerships
Art. 594Art. 594 1 A limited partnership is a partnership in which two or more persons join together in order to operate a trading, manufacturing or other form of commercial business under a single business name in such a manne…
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4B. Non-commercial partnerships
Art. 595Art. 595 Where a limited partnership does not operate a commercial business, it does not exist as a limited partnership until it has itself entered in the commercial register.
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4C. Entry in the commercial register
5I. Place and contributions in kind
Art. 596Art. 596 1 The partnership must be registered in the commercial register for the place where its seat is located. Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law…
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5II. Formal requirements
Art. 597Art. 597 1 All applications to have facts entered or entries modified must be signed by all the partners in person at the commercial register office or submitted in writing bearing duly authenticated signatures. 2 Partn…
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3Section Two: Relationship between Partners
4A. Freedom of contract, reference to general partnership
Art. 598Art. 598 1 The relationship between the partners is primarily determined by the partnership agreement. 2 Unless otherwise agreed, the provisions governing general partnerships apply subject to the modifications set out…
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4B. Management of business
Art. 599Art. 599 The partnership’s affairs are managed by the partner or partners with unlimited liability.
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4C. Position of limited partners
Art. 600Art. 600 1 A limited partner is by definition neither entitled nor obliged to manage the affairs of the partnership. 2 Nor is he entitled to object to actions taken by managing partners, providing these fall within the…
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4D. Share in profit and loss
Art. 601Art. 601 1 A limited partner’s participation in any loss is limited to the amount of his specific contribution. 2 In the absence of agreement on the limited partners’ share in profits and losses, it is determined by the…
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3Section Three: Relationship between the Partnership and Third Parties
4A. In general
Art. 602Art. 602 The partnership may acquire rights, assume obligations, and sue and be sued in its own name.
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4B. Representation
Art. 603Art. 603 The partnership is represented by its general partner or partners in accordance with the rules governing general partnerships.
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4C. Liability of general partners
Art. 604Art. 604 A partner with unlimited liability may be sued for a partnership debt only if the partnership has been dissolved or debt enforcement proceedings have been brought against it without success.
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4D. Liability of limited partners
5I. Acting for the partnership
Art. 605Art. 605 A limited partner conducting business on behalf of the partnership without stating expressly that he is acting as its registered attorney or commercial agent is liable to bona fide third parties for obligations…
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5II. Lack of registration
Art. 606Art. 606 Where the partnership has engaged in business prior to being entered in the commercial register, a limited partner is liable to bona fide third parties for obligations resulting from such business as if he were…
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5III. ...
Art. 607Art. 607 Repealed by No I of the FA of 25 Sept. 2015 (Law of Business Names), with effect from 1 July 2016 (AS 2016 1507; BBl 2014 9305). Repealed by No I of the FA of 25 Sept. 2015 (Law of Business Names), with effect…
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5IV. Scope of liability
Art. 608Art. 608 1 A limited partner is liable to third parties in the amount of his specific contribution as entered in the commercial register. 2 Where he has stated a higher amount to third parties or the partnership has don…
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5V. Reduction of limited partner’s specific contribution
Art. 609Art. 609 1 Where by agreement with the other partners or by means of withdrawals a limited partner has reduced his specific contribution as entered in the commercial register or otherwise announced, such modification ha…
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5VI. Creditors’ right of action
Art. 610Art. 610 1 For the duration of the partnership, its creditors have no right of action against a limited partner. 2 If the partnership is dissolved, the creditors, liquidators and insolvency administrators may request th…
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5VII. Entitlement to interest and profit
Art. 611Art. 611 1 Limited partners are entitled to interest and profit only where and to the extent that payment thereof does not result in a reduction of their specific contribution. 2 However, limited partners are required t…
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5VIII. Joining limited partnerships
Art. 612Art. 612 1 A person joining a general or limited partnership as a limited partner is liable with his specific contribution for all partnership liabilities including those that were contracted prior to his accession. 2 A…
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4E. Position of personal creditors
Art. 613Art. 613 1 The personal creditors of a general partner or a limited partner have no rights to the partnership’s assets for the purposes of satisfying or securing their claims. 2 Enforcement proceedings brought by them a…
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4F. Set off
Art. 614Art. 614 1 Where a partnership creditor is simultaneously the personal debtor of a limited partner, the creditor has no right to set off the two debts against each other unless the limited partner has unlimited liabilit…
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4G. Insolvency
5I. In general
Art. 615Art. 615 1 The insolvency of the partnership does not result in the bankruptcy of the partners. 2 Likewise, the bankruptcy of one of the partners does not result in the insolvency of the partnership.
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5II. Insolvency of the partnership
Art. 616Art. 616 1 The partnership’s creditors are entitled to satisfaction from the partnership’s assets to the exclusion of the personal creditors of the individual partners. 2 Limited partners have no claim as creditors in i…
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5III. Procedure against general partners
Art. 617Art. 617 Where the partnership’s assets are insufficient to satisfy the partnership’s creditors, the latter are entitled to seek satisfaction for the entire remainder of their claims from the personal assets of each ind…
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5IV. Bankruptcy of limited partners
Art. 618Art. 618 In the event of the bankruptcy of a limited partner, neither the partnership’s creditors nor the partnership itself have preferential rights over his personal creditors.
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3Section Four: Dissolution, Liquidation, Prescription
Art. 619Art. 619 1 The provisions governing general partnerships also apply to the dissolution and liquidation of limited partnerships and to the prescriptive periods applicable to claims against the partners. 2 Where a limited…
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2Twenty-Sixth title: The Company Limited by Shares
3Section One: General Provisions
4A. Definition
Art. 620Art. 620 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4B. Share capital
Art. 621Art. 621 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4C. Shares
5I. Types
Art. 622Art. 622 1 The shares may be either registered or bearer shares. They may be issued in the form of negotiable securities. The articles of association may stipulate that they may be issued as uncertificated or ledger-bas…
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5II. Splitting and consolidating shares
Art. 623Art. 623 1 By amending the articles of association, the general meeting may divide the shares into shares with a lower nominal value or consolidate them into shares with a higher nominal value, provided the share capita…
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5III. Issue price
Art. 624Art. 624 1 The shares may be issued only at their nominal value or at a price that is higher. This does not apply to the issue of new shares to replace cancelled shares. 2–3 ... Repealed by No I of the FA of 4 Oct. 1991…
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Art. 625Art. 625 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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4D. Content of the articles of association prescribed by law
Art. 626Art. 626 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The ar…
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Art. 627 und 628Art. 627 and 628 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from…
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4E. Foundation
5I. Deed of incorporation
61. Content
Art. 629Art. 629 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The co…
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62. Share subscription
Art. 630Art. 630 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The shar…
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5II. Supporting documents
Art. 631Art. 631 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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5III. Capital contributions
61. Minimum contribution
Art. 632Art. 632 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 When t…
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62. Payment of contributions
7a. Money contributions
Art. 633Art. 633 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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7b. Contributions in kind
Art. 634Art. 634 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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7c. Offset with a claim
Art. 634aArt. 634a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733: BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7d. Subsequent contribution
Art. 634bArt. 634b Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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63. Verification of capital contributions
7a. Statutory report
Art. 635Art. 635 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The foun…
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7b. Audit confirmation
Art. 635aArt. 635a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Share…
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5IV. Special privileges
Art. 636Art. 636 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 637–639Art. 637–639 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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4F. Entry in the commercial register
5I. Company
Art. 640Art. 640 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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5II. ...
Art. 641Art. 641 Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with effect from 1 Jan. 2021 (AS 2020 957; BBl 2015 3617). Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with…
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5III. …
Art. 642Art. 642 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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4G. Acquisition of legal personality
5I. Time; Entry conditions not satisfied
Art. 643Art. 643 1 The company acquires legal personality only through entry in the commercial register. 2 It acquires legal personality thereby even if the conditions for such entry were in fact not satisfied. 3 However, where…
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5II. Nullity of shares issued before registration
Art. 644Art. 644 1 Shares issued before the company is entered in the commercial register are void; obligations arising from the share subscription are unaffected thereby. Amended by No I of the FA of 19 June 2020 (Company Law)…
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5III. Obligations contracted prior to entry
Art. 645Art. 645 1 A person acting in the name of the company prior to entry in the commercial register is liable personally and jointly and severally for his actions. 2 Where such obligations were incurred expressly in the nam…
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Art. 646Art. 646 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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4H. Amendment of the articles of association
Art. 647Art. 647 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 648 und 649Art. 648 and 649 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II…
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4I. Increase and reduction in the share capital
5I. Ordinary capital increase
61. Resolution of the general meeting
Art. 650Art. 650 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 651Art. 651 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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Art. 651aArt. 651a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted…
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62. Share subscription
Art. 652Art. 652 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The sh…
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Art. 652aArt. 652a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by Annex No 1 of the Financial Services Act of 15 June 2018, with effect from 1 Jan. 2020 (AS 2019 4417; BBl 2015 8901). Inser…
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63. Subscription right and issue price
Art. 652bArt. 652b Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Eve…
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64. Making of contributions
Art. 652cArt. 652c Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Unles…
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65. Increase from equity capital
Art. 652dArt. 652d Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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66. Capital increase report
Art. 652eArt. 652e Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The b…
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67. Audit confirmation
Art. 652fArt. 652f Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 A l…
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68. Amendment of articles of association and statements from the board of directors
Art. 652gArt. 652g Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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69. Nullity of shares issued before registration
Art. 652hArt. 652h Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5II. Increase from contingent capital
61. General principle
Art. 653Art. 653 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Restrictions
Art. 653aArt. 653a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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63. Basis in articles of association
Art. 653bArt. 653b Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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64. Protection of shareholders
Art. 653cArt. 653c Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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65. Protection of beneficiaries of conversion or option rights
Art. 653dArt. 653d Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Per…
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66. Execution of capital increase
7a. Exercise of rights; capital contribution
Art. 653eArt. 653e Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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7b. Audit confirmation
Art. 653fArt. 653f Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7c. Amendment of the articles of association and statements of the board of directors
Art. 653gArt. 653g Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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Art. 653hArt. 653h Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted…
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67. Deletion
Art. 653iArt. 653i Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5III. Reducing the share capital
61. Ordinary capital reduction
7a. Principles
Art. 653jArt. 653j Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7b. Securing claims
Art. 653kArt. 653k Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7c. Interim account
Art. 653lArt. 653l Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7d. Audit confirmation
Art. 653mArt. 653m Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7e. Resolution of the general meeting
Art. 653nArt. 653n Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7f. Amendment of the articles of association and declarations of the board of directors; Entry in the commercial register
Art. 653oArt. 653o Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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62. Capital reduction in the event of negative net worth
Art. 653pArt. 653p Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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63. Simultaneous reduction and increase in share capital
7a. Principle
Art. 653qArt. 653q Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7b. Cancellation of shares
Art. 653rArt. 653r Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5IV. Capital band
61. Authorisation
Art. 653sArt. 653s Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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62. Principles in the articles of association
Art. 653tArt. 653t Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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63. Increasing and reducing the share capital within the capital band
Art. 653uArt. 653u Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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64. Increase or reduction of the share capital by the general meeting
Art. 653vArt. 653v Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5V. Preference shares
61. Require-ments
Art. 654Art. 654 1 Pursuant to or by amendment of the articles of association, the general meeting may resolve that preference shares be issued or that existing shares be converted into preference shares. 2 Where a company has…
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Art. 655Art. 655 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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62. Status of preference shares
Art. 656Art. 656 1 Preference shares enjoy the preferential rights vis-à-vis ordinary shares that are expressly conferred on them by the original articles of association or by amendment thereof. In other respects, they are of e…
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4J. Participation certificates
5I. Definition; applicableregulations
Art. 656aArt. 656a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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5II. Participation and share capital
Art. 656bArt. 656b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5III. Legal status of the participation certificate holders
61. In general
Art. 656cArt. 656c Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Par…
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62. Notice of and information on resolutions of general meetings
Art. 656dArt. 656d Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Whe…
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63. Representation on the board of directors
Art. 656eArt. 656e Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The a…
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64. Pecuniary rights
7a. In general
Art. 656fArt. 656f Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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7b. Subscription rights
Art. 656gArt. 656g Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Whe…
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4K. Dividend rights certificates
Art. 657Art. 657 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The ar…
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Art. 658Art. 658 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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4L. Own shares
5I. Requirements for and restrictions on acquisition
Art. 659Art. 659 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5II. Consequences of acquisition
Art. 659aArt. 659a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5III. Own shares in the group
Art. 659bArt. 659b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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3Section Two: Rights and Obligations of Shareholders
4A. Entitlement to a share of the profits and proceeds of liquidation
5I. In general
Art. 660Art. 660 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Every…
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5II. Calculation method
Art. 661Art. 661 Unless the articles of association provide otherwise, the share of the profits and the proceeds of liquidation are calculated in proportion to the amounts paid up on the share capital.
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Art. 662Art. 662 Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with e…
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Art. 662aArt. 662a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Ins…
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Art. 663Art. 663 Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with e…
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Art. 663a und 663bArt. 663a and 663b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1…
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4B. …
Art. 663bbisArt. 663bbis Inserted by No I of the FA of 7 Oct. 2005 (Transparency in relation to remuneration of members of the board of directors and the executive board) (AS 2006 2629; BBl 2004 4471). Repealed by No I of the FA of…
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Art. 663cArt. 663c Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted…
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Art. 663d–663hArt. 663d–663h Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589)…
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Art. 664 und 665Art. 664 and 665 Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law)…
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Art. 665aArt. 665a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Ins…
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Art. 666 und 667Art. 666 and 667 Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law)…
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Art. 668Art. 668 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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Art. 669Art. 669 Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 1 of the FA of 23 Dec. 2011 (Financial Reporting Law), with e…
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Art. 670Art. 670 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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4C. Reserves
5I. Statutory capital reserve
Art. 671Art. 671 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 671a und 671bArt. 671a and 671b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399).…
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5II. Statutory retained earnings
Art. 672Art. 672 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5III. Voluntary retained earnings
Art. 673Art. 673 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5IV. Offsetting losses
Art. 674Art. 674 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4D. Dividends, interest before commencement of operations and shares of profits paid to board members
5I. Dividends
Art. 675Art. 675 1 No interest may be paid on the share capital. 2 Dividends may be paid only from the disposable profit and from reserves formed for this purpose. Amended by No I of the FA of 4 Oct. 1991, in force since 1 July…
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5II. Interim dividends
Art. 675aArt. 675a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5III. Interest before commencement of operations
Art. 676Art. 676 1 The shareholders may be paid interest out of the investment account for the time required to prepare and build up the company prior to commencement of full operations. The articles of association must stipula…
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5IV. Shares of profits paid to board members
Art. 677Art. 677 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Shares o…
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4E. Repayment of benefits
5I. In general
Art. 678Art. 678 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5II. Prescription
Art. 678aArt. 678a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5III. Shares of profits paid to board members on insolvency
Art. 679Art. 679 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Where…
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4F. Shareholder’s duty to contribute
5I. Object
Art. 680Art. 680 1 A shareholder may not be required, even under the articles of association, to contribute more than the amount fixed for subscription of a share on issue. 2 A shareholder does not have the right to reclaim the…
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5II. Consequences of default
61. By law and the articles of association
Art. 681Art. 681 1 A shareholder who fails to pay in the issue amount for their share in good time is obliged to pay default interest. 2 Further, the board Term in accordance with No II 3 of the FA of 4 Oct. 1991, in force sinc…
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62. Call for performance
Art. 682Art. 682 1 Where the board of directors intends to declare the defaulting shareholder in forfeit of his rights in respect of the share subscription or to require him to pay the contractual penalty provided for in the ar…
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4G. Issue and transfer of shares
5I. Bearer shares
Art. 683Art. 683 1 Bearer shares may be issued only after the full nominal value has been paid up. 2 Shares issued before the full nominal value is paid up are void. Claims for damages are reserved.
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5II. Registered shares
Art. 684Art. 684 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Unless…
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5III. In the case of overindebted companies that do not operate as a business and have no assets
Art. 684aArt. 684a Inserted by No I 1 of the FA of 18 March 2022 on Combating Abuse of Bankruptcy Procedures, in force since 1 Jan. 2025 (AS 2023 628; BBl 2019 5193). Inserted by No I 1 of the FA of 18 March 2022 on Combating Ab…
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4H. Restricted transferability
5I. Statutory restriction
Art. 685Art. 685 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Regist…
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5II. Restrictions under the articles of association
61. General principles
Art. 685aArt. 685a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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62. Unlisted registered shares
7a. Requirements for refusal
Art. 685bArt. 685b Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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7b. Effect
Art. 685cArt. 685c Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Whe…
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63. Listed registered shares
7a. Requirements for refusal
Art. 685dArt. 685d Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 In…
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7b. Duty of notification
Art. 685eArt. 685e Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Where…
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7c. Transfer of rights
Art. 685fArt. 685f Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Whe…
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7d. Time limit for refusal
Art. 685gArt. 685g Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Where…
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64. Share register
7a. Entry
Art. 686Art. 686 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The co…
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7b. Deletion
Art. 686aArt. 686a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). After…
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65. Registered shares not fully paid in
Art. 687Art. 687 1 The acquirer of a registered share that is not fully paid up has an obligation to the company to pay up the remainder as soon as he is entered in the share register. 2 Where the person who subscribed for the…
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5III. Interim certificates
Art. 688Art. 688 1 Interim certificates made out to the bearer may be issued only for bearer shares whose the nominal value is fully paid up. Interim certificates made out to the bearer issued before the full nominal value is p…
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4J. Personal membership rights
5I. Teilnahme an the general meeting
61. General principle
Art. 689Art. 689 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The sh…
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62. Entitlement against the company
Art. 689aArt. 689a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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63. Representation of shareholders
7a. In general
Art. 689bArt. 689b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7b. Independent voting representative in companies whose shares are listed on a stock exchange
Art. 689cArt. 689c Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7c. Independent voting representative and delegation of the voting right of corporate bodies in companies whose shares are not listed on a stock exchange
Art. 689dArt. 689d Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7d. Delegation of voting rights to custodian banks in companies whose shares are not listed on a stock exchange
Art. 689eArt. 689e Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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7e. Disclosure
Art. 689fArt. 689f Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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64. Multiple beneficiaries
Art. 690Art. 690 1 Where a share is owned collectively, the beneficiaries of the rights it confers may exercise such rights only through a joint representative. 2 In the case of the usufruct of a share, such rights are represen…
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5II. Unauthorised participation
Art. 691Art. 691 1 The lending of shares for the purpose of exercising the right to vote at a general meeting is forbidden if the intention in so doing is to circumvent a restriction on the right to vote. 2bis Members of the bo…
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5III. Voting rights at general meetings of shareholders
61. General principle
Art. 692Art. 692 1 The shareholders shall exercise their right to vote at general meetings of shareholders in proportion to the total nominal value of the shares belonging to them. 2 Every shareholder has at least one vote, eve…
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62. Shares with privileged right to vote
Art. 693Art. 693 1 The articles of association may stipulate that the right to vote is determined regardless of nominal value by the number of shares belonging to each shareholder, such that each share confers one vote. 2 In th…
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63. Entitlement to exercise right to vote
Art. 694Art. 694 The right to vote shall take effect as soon as the amount on the share determined by law or the articles of association is paid up.
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64. Exclusion of right to vote
Art. 695Art. 695 1 In the case of resolutions concerning the discharge of the board of directors, persons who have participated in any manner in the management of the company’s business have no right to vote. 2 … Repealed by No…
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Art. 696Art. 696 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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5IV. Right to information and to inspect
61. Right to information
Art. 697Art. 697 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Right to inspect
Art. 697aArt. 697a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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63. Refusal of the request for information or to inspect
Art. 697bArt. 697b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5V. Right to instigate a special investigation
61. With approval of the general meeting
Art. 697cArt. 697c Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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62. If the motion is rejected by the general meeting
Art. 697dArt. 697d Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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63. Procedure before the court
Art. 697eArt. 697e Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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64. Conduct of the special investigation
Art. 697fArt. 697f Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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65. Report
Art. 697gArt. 697g Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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66. Procedure and publication
Art. 697hArt. 697h Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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67. Costs of the special investigation
Art. 697hbisArt. 697hbis Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2…
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Art. 697iArt. 697i Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force (AS 2015 1389; BBl 2014 605). Repealed by No I 1 of the FA of 21 June 2…
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4K. Obligation of shareholder to give notice
5I. Notice of beneficial owner of shares
Art. 697jArt. 697j Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force (AS 2015 1389; BBl 2014 605). Amended by No I 1 of the FA of 21 June 20…
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Art. 697kArt. 697k Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force (AS 2015 1389; BBl 2014 605). Repealed by No I 1 of the FA of 21 June 2…
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5II. Register of beneficial owners
Art. 697lArt. 697l Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force (AS 2015 1389; BBl 2014 605). Amended by No I 1 of the FA of 21 June 20…
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5III. Failure to comply with obligations to give notice
Art. 697mArt. 697m Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the 2012 revised recommendations of the Financial Action Task Force, in force since 1 July 2015 (AS 2015 1389; BBl 2014 605). Inserted by N…
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4L. Arbitral tribunal
Art. 697nArt. 697n Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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3Section Three Organisation of the Company Limited by Shares
4A. The General Meeting
5I. Powers
Art. 698Art. 698 1 The supreme governing body of a company limited by shares is the general meeting. 2 It has the following inalienable powers: 1. to determine and amend the articles of association; 2. to elect the members of t…
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5II. Convening and conducting the general meeting
61. Method of convening the meeting
Art. 699Art. 699 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Notice of the annual report
Art. 699aArt. 699a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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63. Right to table agenda items and motions
Art. 699bArt. 699b Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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64. Content of the notice convening the meeting
Art. 700Art. 700 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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65. Universal meeting and consent to a motion
Art. 701Art. 701 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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66. Venue
7a. In general
Art. 701aArt. 701a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7b. Foreign venue
Art. 701bArt. 701b Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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67. Use of electronic means
7a. Exercise of shareholder rights
Art. 701cArt. 701c Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7b. Virtual general meeting
Art 701dArt 701d Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7c. Requirements for the use of electronic means
Art. 701eArt. 701e Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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7d. Technical problems
Art. 701fArt. 701f Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5III. Preparatory measures; minutes
Art. 702Art. 702 Amended by No I of the FA of 4 Oct. 1991. in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991. in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The bo…
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5IV. Right of members of the board of directors and the executive board to make a statement; Right of the board of directors to table motions
Art. 702aArt. 702a Inserted by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names) (AS 2007 479…
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5V. Resolutions and elections
61. In general
Art. 703Art. 703 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Important resolutions
Art. 704Art. 704 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 A reso…
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63. Conversion of bearer shares into registered shares
Art. 704aArt. 704a Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the 2012 revised recommendations of the Financial Action Task Force, in force since 1 July 2015 (AS 2015 1389; BBl 2014 605). Inserted by N…
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64. Notice the items on the agenda
Art. 704bArt. 704b Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5VI. Right to remove
Art. 705Art. 705 1 The general meeting may remove any persons that it has elected. Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of t…
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5VII. Challenging resolutions of the general meeting
61. Right of action and grounds
Art. 706Art. 706 1 The board of directors and every shareholder may challenge resolutions of the general meeting which violate the law or the articles of association by bringing action against the company before the court. 2 In…
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62. Procedure
Art. 706aArt. 706a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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5VIII. Nullity
Art. 706bArt. 706b Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). In pa…
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4B. The Board of Directors
5I. In general
61. Eligibility
Art. 707Art. 707 1 The company’s board of directors comprises one or more members. Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooper…
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Art. 708Art. 708 Repealed by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), with effect…
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62. Representation of shareholder classes and groups
Art. 709Art. 709 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Where…
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63. Term of office
Art. 710Art. 710 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 711Art. 711 Repealed by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), with effect…
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5II. Organisation
61. Chair
Art. 712Art. 712 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Resolutions
Art. 713Art. 713 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Resolu…
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63. Void resolutions
Art. 714Art. 714 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The grou…
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64. Right to convene meetings
Art. 715Art. 715 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Any memb…
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65. Right to information and of inspection
Art. 715aArt. 715a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Any…
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5III. Duties
61. In general
Art. 716Art. 716 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The bo…
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62. Non-transferable duties
Art. 716aArt. 716a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The…
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63. Delegation of business management
Art. 716bArt. 716b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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5IV. Duty of care and loyalty
61. In general
Art. 717Art. 717 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The me…
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62. Conflicts of interest
Art. 717aArt. 717a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5V. Representation
61. In general
Art. 718Art. 718 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The bo…
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62. Scope and restriction
Art. 718aArt. 718a Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733, BBl 1983 II 745). Inserted by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733, BBl 1983 II 745). 1 The…
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63. Contracts between the company and its representative
Art. 718bArt. 718b Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Share…
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64. Signatures
Art. 719Art. 719 The persons with authority to represent the company must sign by appending their signature to the business name of the company.
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Art. 720Art. 720 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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65. Registered attorneys and commercial agents
Art. 721Art. 721 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The boar…
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5VI. Directors’ and officers’ liability
Art. 722Art. 722 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). The comp…
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Art. 723–724Art. 723–724 Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745). Repealed by No I of the FA of 4 Oct. 1991, with effect from 1 July 1992 (AS 1992 733; BBl 1983 II 745).
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5VII. Imminent insolvency, loss of capital and overindebtedness
61. Imminent Insolvency
Art. 725Art. 725 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Capital loss
Art. 725aArt. 725a Inserted by No I of the FA of 4 Oct. 1991 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by…
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63. Overindebtedness
Art. 725bArt. 725b Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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64. Revaluation of immovable property and participations
Art. 725cArt. 725c Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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5VIII. Dismissal and suspension
Art. 726Art. 726 1 The board of directors may dismiss committees, managing directors, executive officers, registered attorneys and other commercial agents that it has appointed at any time. 2 The registered attorneys and commer…
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4C. External Auditors
5I. Audit requirement
61. Ordinary audit
Art. 727Art. 727 1 The following companies must have their annual accounts and if applicable their consolidated accounts reviewed by an external auditor in an ordinary audit: 1. Publicly traded companies; these are companies th…
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62. Limited audit
Art. 727aArt. 727a 1 If the requirements for an ordinary audit are not met, the company must have its annual accounts reviewed by an external auditor in a limited audit. 2 With the consent of all the shareholders, a limited audi…
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5II. Requirements for the external auditor
61. In an ordinary audit
Art. 727bArt. 727b 1 Publicly traded companies must appoint as an external auditor an audit company under state oversight in terms of the Auditor Oversight Act of 16 December 2005SR 221.302. They must also arrange for audits tha…
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62. In a limited audit
Art. 727cArt. 727c Companies that are required to have a limited audit must appoint as external auditor a licensed auditor in terms of the Auditor Oversight Act of 16 December 2005SR 221.302. SR 221.302
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5III. Ordinary audit
61. Independence of the external auditor
Art. 728Art. 728 1 The external auditor must be independent and form its audit opinion objectively. Its true or apparent independence must not be adversely affected. 2 The following are in particular not compatible with indepen…
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62. Duties of the external auditor
7a. Object and extent of the audit
Art. 728aArt. 728a 1 The external auditor shall examine whether: 1. the annual accounts and, if applicable, the consolidated accounts comply with the statutory provisions, the articles of association and the chosen set of financ…
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7b. Audit report
Art. 728bArt. 728b 1 The external auditor provides the board of directors with a comprehensive report with conclusions on the financial reporting, the internal system of control as well as the conduct and the result of the audit…
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7c. Duties to notify
Art. 728cArt. 728c 1 If the external auditor finds that there have been infringements of the law, the articles of association or the organisational regulations, it shall give notice of this to the board of directors in writing.…
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5IV. Limited audit
61. Independence of the external auditor
Art. 729Art. 729 1 The external auditor must be independent and form its audit opinion objectively. Its true or apparent independence must not be adversely affected. 2 Involvement in the accounting and the provision of other se…
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62. Duties of the external auditor
7a. Object and extent of the audit
Art. 729aArt. 729a 1 The external auditor examines whether there are circumstances that indicate that: 1. the annual accounts do not comply with the statutory provisions or the articles of association; 2. the motion made by the…
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7b. Audit report
Art. 729bArt. 729b 1 The external auditor provides the general meeting with a summary report in writing on the result of the audit. This report contains: 1. a reference to the limited nature of the audit; 2. an assessment on the…
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7c. Duty to notify
Art. 729cArt. 729c If the company is obviously overindebted and the board of directors fails to notify the court, then the external auditor will notify the court.
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5V. Common provisions
61. Appointment of the external auditor
Art. 730Art. 730 1 The general meeting shall appoint the external auditor. 2 One or more natural persons or legal entities or partnerships may be appointed. 3 Public audit offices or their employees may also be appointed as ext…
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62. Term of office of the external auditor
Art. 730aArt. 730a 1 The external auditor shall be appointed for a period of one up to three financial years. Its term of office ends on the adoption of the annual accounts for the final year. Re-appointment is possible. 2 In th…
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63. Information and confidentiality
Art. 730bArt. 730b 1 The board of directors shall provide the external auditor with all the documents and information that it requires, in writing if so requested. 2 The external auditor shall safeguard the business secrets of t…
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64. Documentation and retention
Art. 730cArt. 730c 1 The external auditor must document all audit services and keep audit reports and any other essential documents for at least ten years. It must ensure that electronic data can be made readable for the same pe…
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65. Approval of the accounts and allocation of profits
Art. 731Art. 731 1 In companies that are required to have their annual accounts and, if applicable, their consolidated accounts reviewed by an external auditor, the audit report must be submitted before the annual accounts and…
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66. Special provisions
Art. 731aArt. 731a 1 The articles of association and the general meeting may specify details on the organisation of the external auditor in more detail and expand its range of duties. 2 The external auditor may not be assigned d…
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4D. Defects in the Organisation of the Company
Art. 731bArt. 731b 1 Any shareholder or creditor may request the court to take the required measures if a company has any of the following organisational defects: 1. The company lacks any of the required corporate bodies. 2. A r…
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3Section Four: Remuneration in Companies whose Shares are Listed on a Stock Exchange
4A. Scope of application
Art. 732Art. 732 1 The provisions of this section apply to companies whose shares are listed on a stock exchange. 2 Other companies may provide in their articles of association that they apply this section in full or in part.
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4B. Remuneration committee
Art. 733Art. 733 1 The general meeting shall elect the members of the remuneration committee individually. 2 Only members of the board of directors may be elected. 3 The term of office ends on conclusion of the next ordinary ge…
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4C. Remuneration report
5I. In general
Art. 734Art. 734 1 The board of directors shall prepare a written remuneration report each year. 2 The provisions of the thirty-second title on the principles of proper financial reporting, the presentation, currency and langua…
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5II. Remuneration of the board of directors, the executive board and the board of advisors
Art. 734aArt. 734a 1 The remuneration report shall specify all the remuneration that the company has paid directly or indirectly to: 1. current members of the board of directors; 2. current members of the executive board; 3. cur…
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5III. Loans and credit facilities for the board of directors, the executive board and the board of advisors
Art. 734bArt. 734b 1 The remuneration report shall specify: 1. loans and credit facilities granted to the current members of the board of directors, executive board and board of advisors that are still outstanding; 2. loans and…
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5IV. Remuneration, loans and credit facilities granted to close associates
Art. 734cArt. 734c 1 The following shall be shown separately in the remuneration report: 1. the remuneration that the company has paid directly or indirectly on conditions other than the customary market conditions to persons cl…
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5V. Participation rights and options on such rights
Art. 734dArt. 734d The remuneration report must indicate the participation rights in the company and the options on such rights of each current member of the board of directors, the executive board and the board of advisors incl…
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5VI. Activities in other undertakings
Art. 734eArt. 734e 1 The remuneration report shall specify the functions of the members of the board of directors, the executive board and the board of advisors in other undertakings in accordance with Article 626 paragraph 2 nu…
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5VII. Gender representation of on the board of directors and in the executive board
Art. 734fArt. 734f See also Art. 4 of the transitional provision to the Amendment of 19.06.2020 at the end of the text. See also Art. 4 of the transitional provision to the Amendment of 19.06.2020 at the end of the text. Unless…
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4D. Voting in the general meeting
5I. Remuneration
Art. 735Art. 735 1 The general meeting shall vote on the remuneration that the board of directors, the executive board and the board of advisors directly or indirectly receive from the company. 2 The articles of association sha…
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5II. Additional amount for the executive board
Art. 735aArt. 735a 1 In the event that the general meeting votes prospectively on the remuneration of the executive board, the articles of association may provide for an additional amount for the remuneration of persons newly ap…
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4E. Term of contracts
Art. 735bArt. 735b 1 The term of the contracts governing the remuneration of the members of the board of directors may not exceed their term of office. 2 The term of limited contracts and the notice of termination for unlimited…
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4F. Remuneration that is not permitted
5I. In the company
Art. 735cArt. 735c The following remuneration for current and former members of the board of directors, the executive board and the board of advisors or for their close associates is not permitted: 1. severance payments that are…
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5II. In the group
Art. 735dArt. 735d Remuneration for members of the board of directors, the executive board and the board of advisors or their close associates for activities in undertakings controlled by the company is not permitted, provided t…
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3Section Five: Dissolution of a Company Limited by Shares
4A. Dissolution in general
5I. Grounds
Art. 736Art. 736 1 The company shall be dissolved: 1. in accordance with the articles of association; 2. by resolution of the general meeting, to be recorded in a public deed; 3. by the commencement of insolvency proceedings; 4…
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5II. Entry in the commercial register
Art. 737Art. 737 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5III. Consequences
Art. 738Art. 738 Amended by Annex No 2 of the Mergers Act of 3 Oct. 2003, in force since 1 July 2004 (AS 2004 2617; BBl 2000 4337). Amended by Annex No 2 of the Mergers Act of 3 Oct. 2003, in force since 1 July 2004 (AS 2004 26…
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4B. Dissolution with liquidation
5I. Consequences of liquidation. powers
Art. 739Art. 739 1 A company entering into liquidation shall retain its legal personality and its existing business name, albeit with the words “in liquidation” appended to it, until such time as its assets have been distribute…
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5II. Appointment and dismissal of the liquidators
61. Appointment
Art. 740Art. 740 1 The liquidation shall be carried out by the board of directors, unless the articles of association or a resolution by the general meeting delegate it to other persons. 2 The board of directors shall notify th…
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62. Dismissal
Art. 741Art. 741 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The ge…
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5III. Liquidation process
61. Balance sheet, call on creditors
Art. 742Art. 742 1 On taking up their office, the liquidators must draw up a balance sheet. 2 The creditors shall be informed of the dissolution of the company and requested to register their claims, by separate letter in the c…
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62. Other duties
Art. 743Art. 743 1 The liquidators must wind up the current business, call in any still outstanding share capital, realise the company’s assets and perform its obligations, providing the balance sheet and the call to creditors…
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63. Protection of creditors
Art. 744Art. 744 1 Where known creditors have failed to register their claims, the amount thereof must be deposited with the court. 2 Similarly, the amount of claims not yet due from the company and of disputed obligations of t…
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64. Distribution of assets
Art. 745Art. 745 1 Unless the articles of association provide otherwise, once the debts of the dissolved company have been discharged, its assets are distributed among the shareholders in proportion to the amounts they contribu…
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5IV. Deletion from the commercial register
Art. 746Art. 746 On completion of the liquidation process, the liquidators shall apply to the commercial register office for the deletion of the business name.
Current article
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5V. Retention of the share register, accounting records and register
Art. 747Art. 747 Amended by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the 2012 revised recommendations of the Financial Action Task Force, in force since 1 July 2015 (AS 2015 1389; BBl 2014 605). Amended by No I…
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4C. Dissolution without liquidation
5I. ...
Art. 748–750Art. 748–750 Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2004 2617; BBl 2000 4337). Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (…
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5II. Takeover by a public sector corporation
Art. 751Art. 751 1 Where the assets of a company limited by shares are taken over by the Confederation, by a canton or, under guarantee from the canton, by a district or commune, with the consent of the general meeting it may b…
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3Section Six: Liability
4A. Liability
5I. ...
Art. 752Art. 752 Repealed by Annex No 1 of the Financial Services Act of 15 June 2018, with effect from 1 Jan. 2020 (AS 2019 4417; BBl 2015 8901). Repealed by Annex No 1 of the Financial Services Act of 15 June 2018, with effec…
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5II. Founder members’ liability
Art. 753Art. 753 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Founder…
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5III. Liability for administration, business management and liquidation
Art. 754Art. 754 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The me…
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5IV. External auditors’ liability
Art. 755Art. 755 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 All pe…
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4B. Damage to the company
5I. Claims outside insolvency
Art. 756Art. 756 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 In add…
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5II. Claims in bankruptcy
Art. 757Art. 757 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 In the…
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5III. Effect of the resolution of release
Art. 758Art. 758 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 The re…
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4C. Joint and several liability and recourse
Art. 759Art. 759 Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). Amended by No I of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733; BBl 1983 II 745). 1 Where…
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4D. Prescription
Art. 760Art. 760 Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 (AS 2018 5343; BBl 2014 235). Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescr…
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Art. 761Art. 761 Repealed by Annex No 5 of the Civil Jurisdiction Act of 24 March 2000, with effect from 1 Jan. 2001 (AS 2000 2355; BBl 1999 III 2829). Repealed by Annex No 5 of the Civil Jurisdiction Act of 24 March 2000, with…
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3Section Seven: Involvement of Public Sector Corporations
Art. 762Art. 762 1 Where public sector corporations such as the Confederation, or a canton, district or commune have a public interest in a company limited by shares, the articles of association of the company may grant that co…
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3Section Eight: Exclusion of Application of the Code to Public-Sector Entities
Art. 763Art. 763 1 The provisions governing the company limited by shares do not apply to companies and entities established by special cantonal legislation and partly administered by the public authorities, such as banks, insu…
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2Title Twenty-Seven: The Partnership limited by Shares
3A. Definition
Art. 764Art. 764 1 A partnership limited by shares is a partnership whose capital is divided into shares and in which one or more partners have unlimited joint and several liability to its creditors in the same manner as partne…
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3B. Directors
4I. Designation and powers
Art. 765Art. 765 1 The partners with unlimited liability constitute the directors of the partnership limited by shares. They are responsible for business management and representation. They must be named in the articles of asso…
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4II. Approval of resolutions of the general meeting
Art. 766Art. 766 Resolutions of the general meeting concerning modification of the partnership’s purpose, extension or curtailment of its areas of business and continuation of the partnership beyond the duration specified in th…
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4III. Withdrawal of authority to manage business and represent the partnership
Art. 767Art. 767 1 Authority to manage business and represent the partnership may be withdrawn from directors on the same conditions as apply to general partnerships. 2 If removed, a director no longer has unlimited liability f…
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3C. Supervisory board
4I. Appointment and powers
Art. 768Art. 768 1 Responsibility for monitoring and continuous supervision of the management of the partnership’s business is allocated to a supervisory board, to which the articles of association may allocate further responsi…
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4II. Liability action
Art. 769Art. 769 1 On behalf of the partnership, the supervisory board may hold the directors to account and take action against them before the courts. 2 In the event of malicious conduct by the directors, the supervisory boar…
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3D. Dissolution
Art. 770Art. 770 1 The partnership is terminated by the departure, death, incapacity or bankruptcy of all the partners with unlimited liability. 2 In other respects, dissolution of the partnership limited by shares is governed…
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3E. Resignation
Art. 771Art. 771 1 A partner with unlimited liability has the same right to resign as a partner in a general partnership. 2 Where one of two or more partners with unlimited liability exercises his right to resign, unless the ar…
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2Title Twenty-Eight: The Limited Liability Company
3Section One: General Provisions
4A. Definition
Art. 772Art. 772 1 A limited liability company is a company with separate legal personality in which one or more persons or commercial enterprises participate. Its nominal capital is specified in the articles of association. It…
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4B. Nominal capital
Art. 773Art. 773 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4C. Capital contributions
Art. 774Art. 774 1 The capital contributions shall have a nominal value that is greater than zero. Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amen…
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4D. Dividend rights certificates
Art. 774aArt. 774a The articles of association may provide for the creation of profit-sharing certificates; the corresponding provisions for companies limited by shares apply.
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4E. …
Art. 775Art. 775 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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4F. Articles of association
5I. Content prescribed by law
Art. 776Art. 776 The articles of association must contain provisions on: 1. the business name and seat of the company; 2. the objects of the company; 3. the amount of nominal capital and of the number and nominal value of the c…
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5II. ...
Art. 776aArt. 776a Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan.…
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4G. Foundation
5I. deed of incorporation
Art. 777Art. 777 1 The company is founded when the founder members declare in public deed that they are founding a limited liability company, lay down the articles of association and appoint the corporate bodies. 2 In the deed…
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5II. Subscription for capital contributions
Art. 777aArt. 777a 1 In order to be valid, the subscription deed for the capital contributions must indicate the number, nominal value and issue price as well as the class of capital contribution if applicable. 2 In the subscrip…
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5III. Documents
Art. 777bArt. 777b 1 In the deed of incorporation, the notary must specify the foundation documents individually and confirm that they have been laid before him and the founder members. 2 The following documents must be appended…
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5IV. Capital contributions
Art. 777cArt. 777c 1 On foundation, a cash deposit corresponding to the full issue price must be made for each capital contribution. 2 In addition, the provisions on companies limited by shares apply to: 1. Amended by No I of th…
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4H. Entry in the commercial register
5I. Company
Art. 778Art. 778 The company must be entered in the commercial register at the place where it has its seat.
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5II. ...
Art. 778aArt. 778a Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with effect from 1 Jan. 2021 (AS 2020 957; BBl 2015 3617). Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with…
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4J. Acquisition of legal personality
5I. Time; Failure to meet requirements
Art. 779Art. 779 1 The company shall acquire legal personality through entry in the commercial register. 2 It shall also acquire legal personality even if the requirements for registration are not in fact fulfilled. 3 Where the…
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5II. Obligations entered into before registration
Art. 779aArt. 779a 1 Persons who act on behalf of the company before it is entered in the commercial register are personally and jointly and severally liable for their acts. 2 Where the company accepts obligations within three m…
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4K. Amendment of the articles of association
Art. 780Art. 780 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4L. Increase in the nominal capital
Art. 781Art. 781 1 The members’ general meeting may resolve to increase the nominal capital. 2 The implementation of the resolution is the responsibility of the managing directors. 3 Subscription and the capital contributions a…
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4M. Reduction of the nominal capital
Art. 782Art. 782 1 The members’ general meeting may resolve to reduce the nominal capital. 2 The nominal capital may be reduced to less than 20 000 francs provided it is at the same time increased again at least to this amount.…
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4N. Acquisition of own capital contributions
Art. 783Art. 783 1 A company may acquire its own capital contributions only if freely disposable equity capital of a value equivalent to the required funds is available and the total nominal value of these capital contributions…
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3Section Two: Rights and Obligations of Company Members
4A. Capital contributions
5I. Official document
Art. 784Art. 784 1 Where an official document is issued in respect of capital contributions, this may only take the form of a document in proof or registered security. 2 The official document must bear the same information on r…
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5II. Transfer
61. Assignment
7a. Form
Art. 785Art. 785 1 The assignment of a capital contribution as well as an obligation to assign must be done in writing. 2 The contract of assignment must contain the same information on rights and obligations under the articles…
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7b. Consent requirements
Art. 786Art. 786 1 An assignment of a capital contribution requires the consent of the members’ general meeting. The members’ general meeting may refuse consent without stating its reasons. 2 The articles of association made de…
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7c. Transfer of rights
Art. 787Art. 787 1 Where the consent of the members’ general meeting is required for the assignment of capital contributions, assignment becomes legally effective only when this consent is granted. 2 If the members’ general mee…
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7d. In the case of overindebted companies that do not operate as a business and have no assets
Art. 787aArt. 787a Inserted by No I 1 of the FA of 18 March 2022 on Combating Abuse of Bankruptcy Procedures, in force since 1 Jan. 2025 (AS 2023 628; BBl 2019 5193). Inserted by No I 1 of the FA of 18 March 2022 on Combating Ab…
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62. Special forms of acquisition
Art. 788Art. 788 1 Where capital contributions are acquired through inheritance, distribution of an estate, matrimonial property law or enforcement proceedings, all related rights and obligations shall be transferred to the acq…
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63. Determining the true value
Art. 789Art. 789 1 If the law or the articles of association stipulate that the true value of the capital contributions should be determined, the parties may request the court to make the valuation. 2 The court shall allocate t…
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64. Usufruct
Art. 789aArt. 789a 1 The creation of a usufruct over capital contributions is governed by the regulations on the transfer of capital contributions. 2 If the articles of association prohibit assignment, then the creation of a usu…
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65. Charge
Art. 789bArt. 789b 1 The articles of association may provide that the creation of a charge over capital contributions requires the consent of the members’ general meeting. This may refuse its consent only for good cause. 2 If th…
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5III. Register of contributions
Art. 790Art. 790 1 The company shall keep a register of capital contributions. It must be kept in such a manner that it can be accessed at any time in Switzerland. Second sentence inserted by No I 2 of the FA of 12 Dec. 2014 on…
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5IIIbis. Notice of the beneficial owner of the capital contributions
Art. 790aArt. 790a Inserted by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force (AS 2015 1389; BBl 2014 605). Amended by No I 1 of the FA of 21 June 20…
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5IV. Entry in the commercial register
Art. 791Art. 791 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5V. Common property
Art. 792Art. 792 Where a capital contribution has two or more holders: 1. they must designate one person as their representative; they may exercise the rights conferred by the capital contribution only through this person; 2. t…
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4B. Payment of capital contributions
Art. 793Art. 793 1 The company members are obliged to make a payment corresponding to the issue price of their capital contributions. 2 The payments may not be refunded.
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4C. Liability of the company members
Art. 794Art. 794 The company is liable for its obligations to the extent of the company assets only.
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4D. Additional financial and material contributions
5I. Additional financial contributions
61. Principle and amount
Art. 795Art. 795 1 The articles of association may require the company members to make additional capital contributions. 2 If the articles of association provide for an obligation to make additional financial contributions, the…
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62. Call for additional financial contributions
Art. 795aArt. 795a 1 Additional financial contributions shall be called in by the managing directors. 2 They may be called in only if: 1. the sum of the nominal capital and statutory reserves is no longer covered; 2. the company…
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63. Repayment
Art. 795bArt. 795b Additional financial contributions may only be refunded in full or in part if the amount is covered by freely disposable equity capital and a licensed audit expert confirms the same in writing.
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64. Reduction
Art. 795cArt. 795c 1 An obligation under the articles of association to make additional financial contributions may be reduced or abolished only if the nominal capital and the statutory reserves are fully covered. 2 The relevant…
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65. Continuation
Art. 795dArt. 795d 1 Company members who resign from the company remain subject to the obligation to make additional financial contributions for three further years subject to the following restrictions. The time of resignation…
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5II. Further material contributions
Art. 796Art. 796 1 The articles of association may require company members to make further material contributions. 2 They may require further material contributions only if this serves the objects of the company, the maintenanc…
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5III. Retrospective introduction
Art. 797Art. 797 The retrospective introduction or amendment of obligations to make additional financial or material contributions under the articles of association requires the consent of all the company members concerned.
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5IV. Arbitral tribunal
Art. 797aArt. 797a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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4E. Dividends, interest, shares of profits paid to board members
Art. 798Art. 798 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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Art. 798a und 798bArt. 798a and 798b Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect fro…
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4F. Preferential capital contributions
Art. 799Art. 799 The provisions of the law on companies limited by shares on preference shares apply mutatis mutandis to preferential capital contributions.
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4G. Refund of payments
Art. 800Art. 800 The corresponding provisions of the law on companies limited by shares apply to the refund of payments made by the company to company members, managing directors and persons closely related thereto.
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4H. Reserves
Art. 801Art. 801 Amended by No I 3 of the FA of 23 Dec. 2011 (Financial Reporting Law), in force since 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Amended by No I 3 of the FA of 23 Dec. 2011 (Financial Reporting Law), in force s…
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4J. Sending the annual report
Art. 801aArt. 801a 1 The annual report and the audit report must be sent to company members at the latest together with the invitation to the annual members’ general meeting. 2 The company members may request that they be sent t…
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4K. Right to information and of inspection
Art. 802Art. 802 1 Any company member may request the managing directors to provide information on any company matter. 2 Unless the company has an external auditor, company members have unrestricted access to the company ledger…
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4L. Duty of loyalty and prohibition of competition
Art. 803Art. 803 1 Company members are obliged to safeguard business secrets. 2 They must refrain from doing anything detrimental to the interests of the company. In particular, they may not carry on business that brings them a…
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3Section Three: Organisation of the Company
4A. Members' general meeting
5I. Responsibilities
Art. 804Art. 804 1 The supreme governing body of the company is the members’ general meeting. 2 The members’ general meeting has the following inalienable powers: 1. to amend the articles of association; 2. to appoint and the r…
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5II. Convening and conduct of the meeting
Art. 805Art. 805 1 The members’ general meeting is convened by the managing directors, or if necessary by the external auditors. The liquidators also have the right to convene a members' general meeting. 2 The annual meeting is…
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5III. Voting rights
61. Determination
Art. 806Art. 806 1 The right to vote of company members shall be determined by the nominal value of their capital contributions. Each company member shall have at least one vote. The articles of association may limit the number…
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62. Exclusion of the right to vote
Art. 806aArt. 806a 1 In the case of resolutions on the discharge of the managing directors, persons who have participated in management in any way are not permitted to vote. 2 In the case of resolutions on the acquisition of its…
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63. Usufruct
Art. 806bArt. 806b In the case of a usufruct over a capital contribution, the usufructuary has the right to vote and related rights. He is liable to the owner in damages if he fails to give due consideration to the interests of…
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5IV. Right of veto
Art. 807Art. 807 1 The articles of association may grant company members a right of veto over certain resolutions of the members’ general meeting. They must the detail the decisions to which the right of veto applies. 2 The ret…
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5V. Resolutions
61. In general
Art. 808Art. 808 The members’ general meeting shall pass resolutions and conduct its elections by an absolute majority of the votes represented, unless the law or articles of association provide otherwise.
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62. Casting vote
Art. 808aArt. 808a The chair of the members’ general meeting shall have the casting vote. The articles of association may provide otherwise.
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63. Important resolutions
Art. 808bArt. 808b 1 A resolution of the members’ general meeting passed by a majority of at least two thirds of the votes represented and an absolute majority of the entire nominal capital in respect of which a right to vote ma…
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5VI. Contesting resolutions of the members' general meeting
Art. 808cArt. 808c The relevant provisions on companies limited by shares apply to the contesting of resolutions of the members’ general meeting.
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4B. Management and representation
5I. Designation the managing director and organisation
Art. 809Art. 809 1 The company members are jointly responsible for the management of the company. The articles of association may adopt alternative provisions on management. 2 Only natural persons may be appointed as managing d…
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5II. Duties of the managing directors
Art. 810Art. 810 1 The managing directors shall be responsible for all matters not assigned by law or the articles of association to the members’ general meeting. 2 Subject to the reservation of the following provisions, the ma…
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5III. Approval by the members' general meeting
Art. 811Art. 811 1 The articles of association may provide that the managing directors: 1. submit certain decisions to the members' general meeting for approval; 2. may submit individual matters to the members' general meeting…
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5IV. Duty of care and of loyalty; prohibition of competition
Art. 812Art. 812 1 The managing directors and third parties who are involved in management must carry out their duties with all due care and safeguard the interests of the company in good faith. 2 They are subject to the same d…
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5V. Equal treatment
Art. 813Art. 813 The managing directors and third parties who are involved in management must treat company members equally under the same circumstances.
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5VI. Representation
Art. 814Art. 814 1 Each managing director has the right to represent the company. 2 The articles of association may adopt alternative provisions on representation, but at least one managing director must be authorised to repres…
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5VII. Removal of managing directors; Revocation of the right to represent the company
Art. 815Art. 815 1 The members’ general meeting may remove managing directors that it has appointed at any time. 2 Any company member may request the court to revoke or restrict the right of a managing director to manage or rep…
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5VIII. Nullity of decisions
Art. 816Art. 816 Decisions made by the managing directors are subject mutatis mutandis to the same grounds for nullity as resolutions of the general meeting of a company limited by shares.
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5IX. Liability
Art. 817Art. 817 The company is liable for losses or damage caused by unauthorised acts carried out in the exercise of his business activities by a person authorised to manage or represent the company.
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4C. External auditor
Art. 818Art. 818 1 The relevant provisions on companies limited by shares apply to the external auditor. 2 A company member subject to an obligation to make additional financial contributions may request an ordinary audit of th…
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4D. Defects in the Organisation of the Company
Art. 819Art. 819 The relevant provisions on companies limited by shares apply to defects in the organisation the company.
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4E. Imminent insolvency, loss of capital and overindebtedness
Art. 820Art. 820 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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3Section Four: Dissolution and Resignation
4A. Dissolution
5I. Grounds
Art. 821Art. 821 1 A limited liability company must be dissolved: 1. if ground for dissolution stated in the articles of association applies; 2. if the members’ general meeting so resolves; 3. if bankruptcy proceedings are comm…
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5II. Consequences
Art. 821aArt. 821a 1 The relevant provisions on companies limited by shares apply mutatis mutandis to the consequences of dissolution. 2 The dissolution of a company must be entered in the commercial register. Where dissolution…
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4B. Resignation of company members
5I. Resignation
Art. 822Art. 822 1 A company member may apply to the court to for leave to resign for good cause. 2 The articles of association may grant company members the right to resign and make this subject to certain conditions.
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5II. Follow-up resignations
Art. 822aArt. 822a 1 Where a company member files an action for leave to resign for good cause or a company member tenders his resignation based on a right of resignation under the articles of association, the managing directors…
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5III. Exclusion
Art. 823Art. 823 1 Where there is good cause, the company may apply to the court for the exclusion of a company member. 2 The articles of association may provide that the members’ general meeting company may exclude members fro…
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5IV. Interim measures
Art. 824Art. 824 In proceedings relating to the withdrawal of a company member, the court may at the request of a party order that individual or all membership rights and obligations the person concerned be suspended.
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5V. Financial settlement
61. Entitlement and amount
Art. 825Art. 825 1 Where a company member leaves the company, he is entitled to a financial settlement that reflects the true value of his capital contributions. 2 Where the company member leaves by exercising a right of resign…
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62. Payment
Art. 825aArt. 825a 1 The financial settlement becomes due for payment when the company members leaves, provided the company: 1. has disposable equity capital; 2. is able to dispose of the capital contributions of the departing m…
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4C. Liquidation
Art. 826Art. 826 1 Each company member shall have the right to a share of the proceeds of liquidation corresponding to fraction that nominal value of his capital contribution represents of the nominal capital. Where additional…
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3Section Five: Liability
Art. 827Art. 827 The relevant provisions on companies limited by shares apply to the liability of persons who are involved in the foundation, management, auditing or liquidation of a limited liability company.
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2Title Twenty-Nine: The Cooperative
3Section One: Definition and Foundation
4A. Cooperatives under the Code of Obligations
Art. 828Art. 828 1 A cooperative is a corporate entity consisting of an unlimited number of persons or commercial enterprises which primarily aims to promote or safeguard the economic interests of the cooperative’s members by w…
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4B. Cooperatives under public law
Art. 829Art. 829 Associations of persons under public law are governed by federal and cantonal public law even where formed to pursue cooperative purposes.
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4C. Foundation
5I. Requirements
61. In general
Art. 830Art. 830 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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62. Number of members
Art. 831Art. 831 1 At least seven members must be involved in the foundation of a cooperative. 2 Where the number of members subsequently drops below the minimum number, the provisions of the law on companies limited by shares…
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5II. Articles of association
61. Content prescribed by law
Art. 832Art. 832 The articles of association must contain provisions concerning: 1. Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of…
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62. Further provisions
Art. 833Art. 833 In order to be binding, provisions on the following matters must be included in the articles of association: 1. creation of the cooperative’s nominal capital by means of cooperative shares (share certificates);…
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5III. Constituent assembly
Art. 834Art. 834 1 The articles of association shall be drawn up in writing and submitted to an assembly convened by the founder members for consultation and approval. 2 In addition, a written report by the founder members on a…
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5IV. Entry in the commercial register
61. Cooperative
Art. 835Art. 835 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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62. ...
Art. 836Art. 836 Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with effect from 1 Jan. 2021 (AS 2020 957; BBl 2015 3617). Repealed by No I 2 of the FA of 17 March 2017 (Commercial Register Law), with…
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63. Register of members
Art. 837Art. 837 Amended by No I 2 of the FA of 12 Dec. 2014 on the Implementation of the revised recommendations 2012 of the Financial Action Task Force, in force since 1 July 2015 (AS 2015 1389; BBl 2014 605). Amended by No I…
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5V. Acquisition of legal personality
Art. 838Art. 838 1 The cooperative shall acquire legal personality only through entry in the commercial register. 2 Persons acting in the name of the cooperative prior to entry in the commercial register are liable personally a…
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4D. Amendment of the articles of association
Art. 838aArt. 838a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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3Section Two: Acquisition of Membership
4A. General principle
Art. 839Art. 839 1 New members may be accepted into a cooperative at any time. 2 Providing the principle of unlimited membership is respected, the articles of association may lay down more detailed provisions governing accessio…
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4B. Declaration of accession
Art. 840Art. 840 1 Accession requires a written declaration. 2 Where, in addition to being liable with its assets, a cooperative provides for personal liability or the liability to make additional contributions on the part of t…
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4C. In connection with an insurance policy
Art. 841Art. 841 1 Where membership of the cooperative is linked with taking out an insurance policy with the cooperative, membership shall be acquired on acceptance of the insurance application by the competent governing body.…
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3Section Three: Loss of Membership
4A. Departure
5I. Freedom to leave
Art. 842Art. 842 1 Unless a resolution has been passed to dissolve the cooperative, any member is free to leave. 2 The articles of association may provide that a departing member is required to pay an appropriate severance pena…
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5II. Restriction of departure
Art. 843Art. 843 1 A member may be barred from leaving by the articles of association or by agreement for no more than five years. 2 Even during this period a member may leave for good cause. The obligation to pay an appropriat…
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5III. Notice and timing of departure
Art. 844Art. 844 1 Members may leave only at the end of the financial year and on expiry of one year’s notice. 2 The articles of association may stipulate a shorter notice period and may permit departures in the course of the f…
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5IV. Exercise in bankruptcy and attachment
Art. 845Art. 845 Where the articles of association grant a departing member a share of the cooperative’s assets, a bankrupt member’s right to leave may be exercised by the bankruptcy administrators or, if the member’s share has…
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4B. Exclusion
Art. 846Art. 846 1 The articles of association may stipulate the grounds on which a member may be excluded. 2 Moreover, a member may be excluded at any time for good cause. 3 Exclusions shall be decided by the general assembly.…
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4C. Death of a member
Art. 847Art. 847 1 Membership shall lapse on the death of the member. 2 However, the articles of association may stipulate that the member’s heirs automatically become members of the cooperative. 3 Further, the articles of asso…
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4D. Lapse of office, employment or contract
Art. 848Art. 848 Where membership of a cooperative is linked to the holding of an office or an employment relationship or is the result of a contractual relationship, as in the case of an insurance cooperative, unless the artic…
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4E. Transfer of membership
5I. In general
Art. 849Art. 849 1 The assignment of shares in the cooperative and, where a certificate is issued as proof of membership or such share, the transfer of this certificate do not automatically make the acquirer a member. The acqui…
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5II. By transfer of land or commercial exploitation
Art. 850Art. 850 1 The articles of association may make membership of a cooperative conditional on ownership or commercial exploitation of a property. 2 In such cases the articles of association may stipulate that, in the event…
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4F. Departure of the legal successor
Art. 851Art. 851 In the case of transfer and inheritance of membership, the conditions for leaving the cooperative are the same for the legal successor as for the former member.
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3Section Four: Rights and Obligations of the Members
4A. Proof of membership
Art. 852Art. 852 1 The articles of association may stipulate that a certificate be issued as proof of membership. 2 Such proof may also be provided as part of the member’s share certificate.
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4B. Share certificates
Art. 853Art. 853 1 Where a cooperative has shares, each member joining it must take at least one. 2 The articles of association may stipulate that multiple shares may be acquired, up to a specified maximum. 3 Share certificates…
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4C. Equality
Art. 854Art. 854 The members all have equal rights and obligations, unless the law makes an exception.
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4D. Rights
5I. Voting right
Art. 855Art. 855 The rights of members to participate in the affairs of the cooperative, in particular with regard to the management of its business and the promotion of the cooperative’s interests, are exercised by taking part…
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5II. Control by the members
61. Notice of the annual report
Art. 856Art. 856 1 No later than ten days prior to the general assembly of members or the ballot to decide on approval of the management report, the consolidated accounts and the annual accounts, these documents together with t…
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62. Release of information
Art. 857Art. 857 1 The members may draw the attention of the external auditor to dubious procedures and request the necessary information. Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amen…
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5III. Rights to share in the annual profit
61. ...
Art. 858Art. 858 Repealed by No I 3 of the FA of 23 Dec. 2011 (Financial Reporting Law), with effect from 1 Jan. 2013 (AS 2012 6679; BBl 2008 1589). Repealed by No I 3 of the FA of 23 Dec. 2011 (Financial Reporting Law), with e…
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62. Profit distribution principles
Art. 859Art. 859 1 Unless the articles of association provide otherwise, any annual profit on the cooperative’s business operations passes in its entirety to the cooperative’s assets. 2 Where distribution of the annual profit a…
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63. Duty to form and accumulate a reserve fund
Art. 860Art. 860 1 Where the net profit is used for a purpose other than to build up the cooperative’s assets, each year one twentieth of it must be allocated to a reserve fund. Such allocations must be made for at least 20 yea…
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64. Annual profit at credit cooperatives
Art. 861Art. 861 1 Credit cooperatives may lay down articles of association that derogate from the provisions governing distribution of annual profit contained in the previous articles, but they too are obliged to form a reserv…
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65. Welfare funds
Art. 862Art. 862 1 The articles of association may also provide for allocations to establish and finance other funds, in particular funds dedicated to the welfare of employees of the company and related workers and for members…
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66. Further allocations to reserves
Art. 863Art. 863 1 Allocations to the reserve fund and other funds in accordance with the law and the articles of association shall be deducted in the first instance from the annual profit available for distribution. 2 Where it…
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5IV. Entitlement to settlement
61. Under the articles of association
Art. 864Art. 864 1 The articles of association shall specify whether the departing members or their heirs have claims on the cooperative’s assets and, if so, what those claims are. Such claims must be calculated on the basis of…
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62. By law
Art. 865Art. 865 1 Where the articles of association make no provision for a settlement entitlement, departing members or their heirs have no such entitlement. 2 Where the cooperative is dissolved within one year of the member’…
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4E. Duties
5I. Duty of loyalty
Art. 866Art. 866 The members are obliged to safeguard the interests of the cooperative loyally and in good faith.
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5II. Duty to make contributions
Art. 867Art. 867 1 The articles of association define the obligatory contributions. 2 Where the members are obliged to pay in contributions on share certificates or to make other contributions, the cooperative must call them in…
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5III. Liability
61. Of the cooperative
Art. 868Art. 868 The cooperative is liable with its assets for its obligations. It is liable exclusively, unless the articles of association provide otherwise.
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62. Of the members
7a. Unlimited liability
Art. 869Art. 869 1 Except in the case of licensed insurance cooperatives, the articles of association may provide that, after the cooperative’s assets, the members have unlimited personal liability. 2 Where this is the case and…
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7b. Limited liability
Art. 870Art. 870 1 Except in the case of licensed insurance cooperatives, the articles of association may provide that, after the cooperative’s assets, the members have limited personal liability for the cooperative’s obligatio…
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7c. Liability to make additional contributions
Art. 871Art. 871 1 Instead of or in addition to such liability, the articles of association may require the members to make additional contributions, which may be used only to cover net losses for the year. 2 The liability to m…
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7d. Inadmissible restrictions
Art. 872Art. 872 Any provisions made in the articles of association which limit liability to a specific time or to particular obligations or groups of members are void.
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7e. Procedure in insolvency
Art. 873Art. 873 1 In the event of the insolvency of a cooperative in which the members are personally liable or liable to make additional contributions, at the same time as they draw up the schedule of claims the insolvency ad…
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7f. Amendment of liability provisions
Art. 874Art. 874 1 The provisions governing the personal liability or liability to make additional contributions of the members and the reduction or cancellation of share certificates may be amended only by amending the article…
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7g. Liability of new members
Art. 875Art. 875 1 A person joining a cooperative in which the members are personally liable or liable to make additional contributions has the same liability as the other members for the cooperative’s obligations, including th…
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7h. Liability after departure or dissolution
Art. 876Art. 876 1 Where a member with limited or unlimited liability leaves the cooperative as a result of death or for some other reason, that member remains liable for the obligations arising prior to departure if the cooper…
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7i. Notification of accessions and departures for entry in the commercial register
Art. 877Art. 877 1 Where the members have limited or unlimited liability for the cooperative’s debts or are liable to make additional contributions, the board must notify every accession or departure of a member for entry in th…
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7k. Prescriptive periods for liability
Art. 878Art. 878 1 Creditors’ claims in respect of the personal liability of individual members may be brought by any creditor at any time up to one year after completion of insolvency proceedings, unless the law provides for t…
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3Section Five: Organisation of the Cooperative
4A. General assembly of members
5I. Powers
Art. 879Art. 879 1 The supreme governing body of a cooperative is the general assembly of members. 2 It has the following inalienable powers: 1. to determine and amend the articles of association; 2. Amended by No I 3 of the FA…
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5II. Ballot
Art. 880Art. 880 In the case of cooperatives with more than 300 members or in which the majority of members are themselves cooperatives, the articles of association may stipulate that all or some of the powers of the general as…
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5III. Convening the general assembly
61. Right and duty
Art. 881Art. 881 1 The general assembly of members shall be convened by the board or any other governing body on which the articles of association confer such authority, and where necessary by the external auditor. First senten…
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62. Form
Art. 882Art. 882 1 The general assembly of members must be convened in the form prescribed by the articles of association but in any event no later than five days before the date for which it is scheduled. 2 In the case of coop…
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63. Agenda items
Art. 883Art. 883 1 The notice convening the meeting must include the agenda items to be discussed and the essential content of any proposed amendments to the articles of association. 2 No resolutions may be made on motions rela…
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64. Universal meeting
Art. 884Art. 884 Where all the cooperative’s members are present, they may, if no objection is raised, pass resolutions without needing to comply with the formal convocation requirements.
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5IV. Voting rights
Art. 885Art. 885 Every member has one vote at the general assembly of members or in the ballot.
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5V. Representation
Art. 886Art. 886 1 A member may exercise their right to vote at the general assembly of members by appointing another member to act as their representative, but no representative may represent more than one member. 2 In the cas…
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5VI. Exclusion of right to vote
Art. 887Art. 887 1 In the case of resolutions concerning the discharge of the board, persons who have participated in any manner in the management of the cooperative’s business have no right to vote. 2 ... Repealed by No I 3 of…
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5VII. Resolutions
61. In general
Art. 888Art. 888 1 Unless otherwise provided for by law or the articles of association, the general assembly of members shall pass resolutions and decide elections by an absolute majority of the votes cast. The same applies to…
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62. Increase of members’ obligations
Art. 889Art. 889 1 Resolutions to introduce or increase the members’ personal liability or their liability to make additional contributions require the consent of three-quarters of all members. 2 Members who did not vote in fav…
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5VIII. Dismissal of the board and the external auditor
Art. 890Art. 890 1 The general assembly of members is entitled to dismiss the members of the board and the external auditor and any registered attorneys or commercial agents appointed by them. Amended by No I 3 of the FA of 16…
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5IX. Challenging resolutions of the general assembly
Art. 891Art. 891 1 The board or any member may challenge resolutions made by the general assembly of members or by ballot which violate the law or the articles of association by bringing action against the cooperative before th…
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5X. Assembly of delegates
Art. 892Art. 892 1 Cooperatives with more than 300 members or in which the majority of the members are cooperatives may delegate all or some of the powers of the general assembly of members to an assembly of delegates by means…
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5XI. Exceptions for insurance cooperatives
Art. 893Art. 893 1 Licensed insurance cooperatives with more than 1,000 members may delegate all or some of the powers of the general assembly of members to the board by means of the articles of association. 2 The powers of the…
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5XII. Venue and use of electronic means
Art. 893aArt. 893a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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4B. Board
5I. Eligibility
61. Membership
Art. 894Art. 894 1 The board of the cooperative shall comprise at least three persons; a majority of them must be members. 2 Where a legal entity or commercial company holds a participation in the cooperative, it shall not be e…
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62. ...
Art. 895Art. 895 Repealed by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), with effect…
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5II. Term of office
Art. 896Art. 896 1 The members of the board shall be elected for a maximum term of office of four years, but may be re-elected unless the articles of association provide otherwise. 2 The provisions governing companies limited b…
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5III. Administrative committees
Art. 897Art. 897 The articles of association may delegate some of the duties and powers of the board to one or more committees elected by the board.
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5IV. Business management and representation
61. Delegation
Art. 898Art. 898 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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62. Scope and restriction
Art. 899Art. 899 1 The persons with authority to represent the cooperative may carry out in its name any transactions conducive to the achievement of the cooperative’s objects. 2 Any restriction of such authority shall have no…
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63. Contracts between the cooperative and its representatives
Art. 899aArt. 899a Inserted by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force si…
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64. Signatures
Art. 900Art. 900 The persons with authority to represent the cooperative must sign by appending their signature to the cooperative’s business name.
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65. …
Art. 901Art. 901 Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Repealed by No I of the FA of 19 June 2020 (Company Law), with effect from 1 Jan. 2…
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5V. Duties
61. In general
Art. 902Art. 902 1 The board must conduct the business of the cooperative with all diligence and employ its best endeavours to further the cooperative’s cause. 2 In particular, it has a duty: 1. to prepare the business of the g…
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62. Repayment of contributions
Art. 902aArt. 902a Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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63. Imminent insolvency, loss of capital and overindebtedness
Art. 903Art. 903 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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5VI. Return of payments to members
Art. 904Art. 904 1 In the event that the cooperative becomes insolvent, the board is obliged to reimburse the cooperative's creditors for all payments received in the three years prior to the onset of insolvency in the form of…
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5VII. Dismissal and suspension
Art. 905Art. 905 1 The board may at any time dismiss the committees, business managers, executive officers and other registered attorneys and commercial agents that it has appointed. 2 The registered attorneys and commercial ag…
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4C. External auditor
5I. In general
Art. 906Art. 906 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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5II. Verification of the membership list
Art. 907Art. 907 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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4D. Defects in organisation
Art. 908Art. 908 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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Art. 909 und 910Art. 909 and 910 Repealed by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), with…
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3Section Six: Dissolution of the Cooperative
4A. Grounds for dissolution
Art. 911Art. 911 The cooperative shall be dissolved: 1. in accordance with the articles of association; 2. by resolution of the general assembly of members; 3. by the commencement of insolvency proceedings; 4. in the other case…
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4B. Entry in the commercial register
Art. 912Art. 912 Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (A…
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4C. Liquidation, distribution of assets
Art. 913Art. 913 1 The cooperative shall be liquidated in accordance with the provisions governing companies limited by shares, subject to the following provisions. 2 The assets of the dissolved cooperative remaining after paym…
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4D. ...
Art. 914Art. 914 Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2004 2617; BBl 2000 4337). Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2…
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4E. Takeover by a public sector corporation
Art. 915Art. 915 1 Where the assets of a cooperative are taken over by the Confederation, by a canton or, under guarantee from the canton, by a district or commune, with the consent of the general assembly of members it may be…
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3Section Seven: Liability
4A. Liability to the cooperative
Art. 916Art. 916 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sinc…
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4B. Liability to the cooperative, members and creditors
Art. 917Art. 917 1 Any director or liquidator who wilfully or negligently breaches their statutory duties with regard to the overindebtedness of the cooperative is liable to the cooperative, the individual members and the credi…
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4C. Joint and several liability and recourse
Art. 918Art. 918 1 Where two or more persons are responsible for the same loss, they are jointly and severally liable. 2 The right of recourse among several defendants shall be determined by the court with due regard to the deg…
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4D. Prescription
Art. 919Art. 919 Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescription), in force since 1 Jan. 2020 (AS 2018 5343; BBl 2014 235). Amended by No I of the FA of 15 June 2018 (Revision of the Law on Prescr…
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4E. Liability in credit and insurance cooperatives
Art. 920Art. 920 In the case of credit cooperatives and licensed insurance cooperatives, liability shall be determined according to the provisions governing companies limited by shares.
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3Section Eight: Cooperative Unions
4A. Requirements
Art. 921Art. 921 Three or more cooperatives may form a cooperative union and constitute it as a cooperative.
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4B. Organisation
5I. Assembly of delegates
Art. 922Art. 922 1 Unless the articles of association provide otherwise, the supreme governing body of the cooperative union shall be the assembly of delegates. 2 The articles of association shall determine the number of delega…
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5II. Board
Art. 923Art. 923 Unless the articles of association provide otherwise, the board shall be made up of members from the affiliated cooperatives.
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5III. Monitoring, challenge
Art. 924Art. 924 1 The articles of association may grant the board of the union the right to monitor the business activities of the affiliated cooperatives. 2 They may the grant the board of the union the right to challenge in…
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5IV. Exclusion of new obligations
Art. 925Art. 925 Accession to a cooperative union may not bring with it any obligations for the members of the acceding cooperative which they do not already have by law or under the articles of association of their own coopera…
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3Section Nine: Involvement of Public Sector Corporations
Art. 926Art. 926 1 Where public sector corporations such as the Confederation or a canton, district or commune have a public interest in a cooperative, the cooperative’s articles of association may grant that corporation the ri…
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1Division Four: The Commercial Register, Business Names and Commercial Accounting
2Title Thirty: The Commercial Register
3A. Definition and purpose
Art. 927Art. 927 1 The commercial register is a network of state-run databases. Its primary purpose is the recording and publication of legally relevant information about legal entities, which serves to provide legal certainty…
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3B. Organisation
4I. Commercial register authorities
Art. 928Art. 928 1 The cantons are responsible for running the commercial register offices. They are free to run the commercial register on a cross-cantonal basis. 2 The Confederation shall exercise oversight over the keeping o…
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4II. Cooperation between authorities
Art. 928aArt. 928a 1 The commercial register authorities shall work together to fulfil their tasks. They shall provide each other with the information and documents that are required to fulfil their tasks. 2 Unless the law provi…
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3C. Central databases
Art. 928bArt. 928b 1 The federal supervisory authority for the commercial register operates the central databases on the legal entities and persons recorded in the cantonal registers. Amended by No I 1 of the FA of 18 March 2022…
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3D. OASI number and personal number
Art. 928cArt. 928c 1 The commercial register authorities shall use the OASI number systematically to identify natural persons. 2 They shall only disclose the OASI number to other authorities and institutions that require the num…
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3E. Registration, amendment and deletion
4I. Principles
Art. 929Art. 929 1 Entries in the commercial register must be true and must neither be misleading nor contrary to any public interest. 2 Recording in the commercial register is based on an application. Documents must be provide…
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4II. Business identification number
Art. 930Art. 930 The legal entities entered in the commercial register registered are assigned a business identification number in accordance with the Federal Act of 18 June 2010SR 431.03 on the Business Identification Number.…
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4III. Obligation to register and voluntary registration
51. Sole proprietorships and branch offices
Art. 931Art. 931 1 A natural person who operates a business that in the most recent financial year achieved revenues of at least 100 000 francs must have their sole proprietorships entered in the commercial register at the plac…
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52. Public institutions
Art. 932Art. 932 1 Public institutions must be entered in the commercial register if they primarily carry on a private gainful economic activity or if the federal, cantonal or communal law requires their registration. They shal…
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4IV. Change in facts
Art. 933Art. 933 1 If a fact must be entered in the commercial register, any change in this fact must also be recorded. 2 A person no longer associated with an entity is entitled to apply for the entry relating to them to be de…
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4V. Ex officio deletion
51. Legal entities that do not operate as a business and that have no assets
Art. 934Art. 934 1 If a legal entity is no longer operating as a business and if it no longer has any disposable assets, the commercial register office shall delete it from the commercial register. 2 The commercial register off…
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52. In the event of a sole proprietorship or branch office having no domicile
Art. 934aArt. 934a 1 If a sole proprietorship no longer has a domicile, then if there is no response to a request published in the Swiss Official Commercial Gazette, it shall be deleted from the commercial register. Amended by N…
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4VI. Reinstatement
Art. 935Art. 935 1 Any person claiming a legitimate interest may request the court to have a deleted legal entity reinstated in the commercial register. 2 A person shall have a legitimate interest in particular if: 1. on conclu…
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3F. Publicity and effectiveness
4I. Publicity and publication on the internet
Art. 936Art. 936 1 The commercial register is public. The information made public includes the entries, applications and the supporting documents. OASI numbers are not public. 2 The entries, articles of association and foundati…
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4II. Publication in the Swiss Official Commercial Gazette and start of effectiveness
Art. 936aArt. 936a 1 Entries in the commercial register shall be published online in the Swiss Official Commercial Gazette. They become effective on publication. 2 All statutory publications shall also be made online in the Swis…
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4III. Effects
Art. 936bArt. 936b 1 If a fact is entered in the commercial register, no one may claim that they were unaware of it. 2 Where the entry of a fact is required but such fact was not entered in the register, it may be relied on in r…
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3G. Obligations
4I. Obligation to verify
Art. 937Art. 937 The commercial register authorities shall verify whether the legal requirements for recording in the commercial register are met, and in particular whether the application and the supporting documents are not c…
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4II. Request and ex officio recording
Art. 938Art. 938 1 The commercial register office shall request parties to fulfil the obligation to register and shall fix a deadline for doing so. 2 If the parties do not comply with the request within the deadline, the office…
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4III. Organisational defects
Art. 939Art. 939 1 If the commercial register office identifies defects in the organisational aspects required by law of trading companies, cooperatives, associations, foundations not subject to supervision or branch offices wi…
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3H. Fixed penalties
Art. 940Art. 940 Any person who is served by the commercial register office with a request to fulfil their obligation to register containing a reference to the penalties under this Article and who fails to comply with this obli…
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3I. Fees
Art. 941Art. 941 1 Any person who gives cause for the commercial register authority to issue a ruling or who claims a service from the same must pay a fee. 2 The Federal Council shall regulate the charging of the individual fee…
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3J. Legal remedies
Art. 942Art. 942 1 Rulings of the commercial register offices may be contested within 30 days of being issued. 2 Each canton shall designate a higher court as the sole appellate authority. 3 The cantonal courts shall give notic…
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3K. Ordinance
Art. 943Art. 943 The Federal Council shall issue regulations on: 1. the keeping of the commercial register and oversight; 2. application, registration, amendment, deletion and reinstatement; 3. the content of entries; 4. the su…
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2Title Thirty-One: Business Names
3A. General principles of business name composition
4I. General provisions
Art. 944Art. 944 1 In addition to the essential content required by law, each business name may contain information which serves to describe the persons mentioned in greater detail, an allusion to the nature of the company or a…
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4II. Names of sole proprietorships
51. Essential content
Art. 945Art. 945 1 A person operating a business as sole proprietor must use his family name, with or without first name, as the essential content of his business name. 2 If the business name contains other family names, it mus…
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52. Exclusivity of the registered business name
Art. 946Art. 946 1 The name of a sole proprietorship Footnote relevant to German version. entered in the commercial register may not be used by another business proprietor in the same location even if he has the same first name…
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Art. 947 und 948Art. 947 and 948 Repealed by No I of the FA of 25 Sept. 2015 (Law of Business Names), with effect from 1 July 2016 (AS 2016 1507; BBl 2014 9305). See however the transitional provision to this amendment at the end of th…
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Art. 949Art. 949 Repealed by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), with effect…
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4III. Company names
51. Composition of the business name
Art. 950Art. 950 Amended by No I of the FA of 25 Sept. 2015 (Law of Business Names), in force since 1 July 2016 (AS 2016 1507; BBl 2014 9305). Amended by No I of the FA of 25 Sept. 2015 (Law of Business Names), in force since 1…
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52. Exclusivity of the registered business name
Art. 951Art. 951 Amended by No I of the FA of 25 Sept. 2015 (Law of Business Names), in force since 1 July 2016 (AS 2016 1507; BBl 2014 9305). See however the transitional provision to this amendment at the end of the text. Ame…
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4IV. Branch offices
Art. 952Art. 952 1 A branch office must have the same business name as the principal place of business; however, it may append a special addition to its business name providing this applies only to that particular branch office…
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4V. ...
Art. 953Art. 953 Repealed by No I of the FA of 25 Sept. 2015 (Law of Business Names), with effect from 1 July 2016 (AS 2016 1507; BBl 2014 9305). Repealed by No I of the FA of 25 Sept. 2015 (Law of Business Names), with effect…
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4VI. Change of name
Art. 954Art. 954 The previous business name may be retained where the name of the business owner or partner contained therein has been changed by operation of law or by the competent authority.
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3B. Obligation to use business and other names
Art. 954aArt. 954a Inserted by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force si…
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3C. Monitoring
Art. 955Art. 955 The registrar is obliged ex officio to ensure that the interested parties comply with the provisions governing the composition of business names.
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3D. Reservation of other provisions of federal law
Art. 955aArt. 955a Inserted by Annex No 2 of the FA of 21 June 2013, in force since 1 Jan. 2017 (AS 2015 3631; BBl 2009 8533). Inserted by Annex No 2 of the FA of 21 June 2013, in force since 1 Jan. 2017 (AS 2015 3631; BBl 2009…
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3E. Protection of business names
Art. 956Art. 956 1 The business name of a sole proprietor or commercial company or cooperative entered in the commercial register and published in the Swiss Official Gazette of Commerce is for the exclusive use of the party tha…
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2Title Thirty-Two: Commercial Accounting, Financial Reporting, Other Transparency and Due Diligence Obligations
3Section One: General Provisions
4A. Duty to keep accounts and file financial reports
Art. 957Art. 957 1 The duty to keep accounts and file financial reports in accordance with the following provisions applies to: 1. sole proprietorships and partnerships that have achieved sales revenue of at least 500,000 franc…
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4B. Accounting
Art. 957aArt. 957a 1 Accounting forms the basis for financial reporting. It records the transactions and circumstances that are required to present the asset, financing and earnings position of the undertaking (the economic posi…
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4C. Financial reporting
5I. Aim and constituent elements
Art. 958Art. 958 1 Financial reporting is intended to present the economic position of the undertaking in such a manner that third parties can make a reliable assessment of the same. 2 The accounts are filed in the annual repor…
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5II. Principles of financial reporting
61. Going-concern assumption
Art. 958aArt. 958a 1 Financial reporting is based on the assumption that the undertaking will remain a going concern for the foreseeable future. 2 If it is intended or probably inevitable that all or some activities will cease i…
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62. Chronological and material distinction
Art. 958bArt. 958b 1 Expenditure and income must be entered separately depending on the date and nature of the transaction. 2 Provided the net proceeds from the sale of goods or services or financial income does not exceed 100,0…
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5III. Recognised financial reporting principles
Art. 958cArt. 958c 1 The following principles in particular apply to financial reports: 1. they must be clear and understandable; 2. they must be complete; 3. they must be reliable; 4. they must include the essential information…
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5IV. Presentation, currency and language
Art. 958dArt. 958d 1 The balance sheet and the profit and loss account may be presented in account or in report form. Items that have no or a negligible value need not be shown separately. 2 In the annual accounts, the correspon…
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4D. Publication and inspection
Art. 958eArt. 958e 1 Following their approval by the competent management body, the annual accounts and consolidated accounts together with the audit reports must either be published in the Swiss Official Gazette of Commerce or…
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4E. Keeping and retaining accounting records
Art. 958fArt. 958f 1 The accounting records and the accounting vouchers together with the annual report and the audit report must be retained for ten years. The retention period begins on expiry of the financial year. 2 The annu…
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3Section Two: Annual Accounts and Interim Accounts
4A. Balance sheet
5I. Purpose of the balance sheet, duty to prepare a balance sheet and balance sheet eligibility
Art. 959Art. 959 1 The balance sheet shows the asset and financing position of the undertaking on the balance sheet date. It is structured into assets and liabilities. 2 Items must be entered on the balance sheet as assets if d…
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5II. Minimum structure
Art. 959aArt. 959a 1 Among the assets, the liquidity ratio must be shown based on at least the following items, both individually and in the specified order: 1. current assets: a. cash and cash equivalents and current assets wit…
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4B. Profit and loss account; minimum structure
Art. 959bArt. 959b 1 The profit and loss account shall present the earnings of the company over the financial year. It may be prepared according to the period-based accounting method or the cost of sales method. 2 If the period-…
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4C. Notes to the accounts
Art. 959cArt. 959c 1 The notes to the annual accounts supplement and explain the other parts of the annual accounts. They contain: 1. details of the principles applied in the annual accounts where these are not specified by law;…
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4D. Valuation
5I. Principles
Art. 960Art. 960 1 Assets and liabilities are normally valued individually, provided they are significant and not normally consolidated as a group for valuation purposes due to their similarity. 2 Valuation must be carried out…
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5II. Assets
61. In general
Art. 960aArt. 960a 1 When first recorded, assets must be valued no higher than their acquisition or manufacturing costs. 2 In any subsequent valuation, assets must not be valued higher than their acquisition or manufacturing cos…
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62. Assets with observable market prices
Art. 960bArt. 960b 1 In the subsequent valuation, assets with a stock exchange price or another observable market price in an active market may be valued at that price as of the balance sheet date, even if this price exceeds the…
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63. Inventories and non-invoiced services
Art. 960cArt. 960c 1 If the realisable value in the subsequent valuation of inventories and non-invoiced services taking account of expected costs is less than the acquisition or manufacturing costs on balance sheet date, this v…
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64. Capital assets
Art. 960dArt. 960d 1 Capital assets are assets that are acquired with the intention of using or holding them for the long-term. 2 Long-term means a period of more than twelve months. 3 Shareholdings are shares in the capital of…
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5III. Liabilities
Art. 960eArt. 960e 1 Liabilities must be entered at their nominal value. 2 If past events lead to the expectation of a cash outflow in future financial years, the provisions probably required must be made and charged to the prof…
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4E. Interim account
Art. 960fArt. 960f Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399). Inserted by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023…
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3Section Three: Financial Report for Larger Undertakings
4A. Additional requirements for the annual report
Art. 961Art. 961 Undertakings that are required by law to have an ordinary audit must: 1. provide additional information in the notes to the annual accounts; 2. prepare a cash flow statement as part of the annual accounts; 3. d…
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4B. Additional information in the notes to the annual accounts
Art. 961aArt. 961a The notes to the annual accounts must also contain the following information: 1. long-term interest-bearing liabilities, arranged according to due date within one to five years or after five years; 2. on the f…
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4C. Cash flow statement
Art. 961bArt. 961b The cash flow statement presents separately changes in cash and cash equivalents from business operations, investment activities and financing activities.
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4D. Management report
Art. 961cArt. 961c 1 The management report presents the business performance and the economic position of the undertaking and, if applicable, of the corporate group at the end of the financial year from points of view not covere…
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4E. Simplifications
Art. 961dArt. 961d 1 The additional information in the notes to the annual accounts, the cash flow statement and the management report may be dispensed with if: 1. the undertaking prepares an account or consolidated accounts in…
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3Section Four: Financial Statements in accordance with Recognised Financial Reporting Standards
4A. General
Art. 962Art. 962 1 In addition to annual accounts under this Title, the following must prepare financial statements in accordance with a recognised financial reporting standard: 1. companies whose equity securities are listed o…
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4B. Recognised financial reporting standards
Art. 962aArt. 962a 1 If financial statements are prepared in accordance with a recognised financial reporting standard, details of the standard must be given in the financial statements. 2 The chosen recognised standard must be…
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3Section Five: Consolidated Accounts
4A. Duty to prepare
Art. 963Art. 963 1 Where a legal entity that is required to file financial reports controls one or more undertakings that are required to file financial reports, the entity must prepare consolidated annual accounts (consolidate…
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4B. Exemption from the duty to prepare accounts
Art. 963aArt. 963a 1 A legal entity is exempt from the duty to prepare consolidated accounts if it: 1. together with the controlled undertaking has not exceeded two of the following thresholds in two successive financial years:…
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4C. Recognised financial reporting standards
Art. 963bArt. 963b 1 The consolidated accounts of the following undertakings must be prepared in accordance with a recognised financial reporting standard: 1. companies whose equity securities are listed on a stock market, if th…
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Art. 964Art. 964 Repealed by No I of the FA of 22 Dec. 1999, with effect from 1 June 2002 (AS 2002 949; BBl 1999 5149). Repealed by No I of the FA of 22 Dec. 1999, with effect from 1 June 2002 (AS 2002 949; BBl 1999 5149).
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3Section Six: Transparency on Non-Financial Matters
4A. Principle
Art. 964aArt. 964a 1 Undertakings shall prepare a report on non-financial matters each year if: 1. they are companies of public interest as defined in Article 2 letter c of the Auditor Oversight Act of 16 December 2005SR 221.302…
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4B. Purpose and content of the report
Art. 964bArt. 964b 1 The report on non-financial matters shall cover environmental matters, in particular the CO2 goals, social issues, employee-related issues, respect for human rights and combating corruption. The report shall…
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4C. Approval, publication, keeping and retaining
Art. 964cArt. 964c 1 The report on non-financial matters requires the approval and signature of the supreme management or governing body and the approval of the governing body responsible for approving the annual accounts. 2 The…
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3Section Seven: Transparency in Raw Material Companies
4A. Principle
Art. 964dArt. 964d 1 Companies that are required by law to undergo an ordinary audit and which are either themselves or through a company that they control involved in the extraction of minerals, oil or natural gas or in the har…
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4B. Forms of payment
Art. 964eArt. 964e 1 The payments made to state bodies may comprise payments in cash or kind. They include in particular the following forms of payment: 1. payments for production rights; 2. taxes on production, the revenues or…
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4C. Form and content of the report
Art. 964fArt. 964f 1 The report on payments made to state bodies shall only cover payments related to business operations in the mineral, petroleum or natural gas extraction industry or to the harvesting of timber in primary for…
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4D. Publication
Art. 964gArt. 964g 1 The report on payments made to state bodies must be published online within six months of the end of the financial year. 2 It must remain publicly accessible for at least ten years. 3 The Federal Council may…
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4E. Keeping and retaining the report
Art. 964hArt. 964h Article 958f applies to keeping and retaining the report on payments made to state bodies.
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4F. Extending the scope of application
Art. 964iArt. 964i The Federal Council may stipulate as part of an internationally coordinated procedure that that the obligations in Articles 964a–964e shall also apply to companies trading in raw materials.
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3Section Eight: Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour
4A. Principle
Art. 964jArt. 964j 1 Undertakings whose seat, head office or principal place of business is located in Switzerland must comply with obligations of due diligence in the supply chain and report thereon if: 1. they place in free ci…
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4B. Due diligence
Art. 964kArt. 964k 1 Undertakings shall maintain a management system and stipulate the following therein: 1. the supply chain policy for minerals and metals that potentially originate from conflict-affected and high-risk areas;…
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4C. Reporting
Art. 964lArt. 964l 1 The supreme management or governing body shall prepare a report each year on compliance with the due diligence obligations. 2 The report shall be prepared in a national language or in English. 3 The supreme…
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1Division Five: Negotiable Securities
2Title Thirty-Three: Registered Securities, Bearer Securities and Instruments to Order
3Section One: General Provisions
4A. Definition of negotiable security
Art. 965Art. 965 A negotiable security is any instrument to which a right attaches in such a manner that it may not be exercised or transferred to another without the instrument.
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4B. Obligation under the security
Art. 966Art. 966 1 The obligor under a negotiable security is obliged to render performance only against surrender of the instrument. 2 By rendering the performance due at maturity to the creditor as indicated by the instrument…
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4C. Transfer of the security
5I. General form
Art. 967Art. 967 1 The transfer of any negotiable security conferring title or a limited right in rem requires the transfer of possession of the instrument in all cases. 2 In addition, the transfer of instruments to order requi…
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5II. Endorsement
61. Form
Art. 968Art. 968 1 In all cases, endorsement must be done in accordance with the provisions governing bills of exchange. 2 The formal requirements for transfer are satisfied once the endorsement is completed and the instrument…
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62. Effect
Art. 969Art. 969 In the case of all transferable securities, unless the content or nature of the instrument dictate otherwise, on endorsement and transfer of the instrument the rights of the endorser pass to the acquirer.
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4D. Conversion
Art. 970Art. 970 1 A registered security or instrument to order may be converted into a bearer security only with the consent of all the beneficiaries and obligors concerned. Such consent must be declared on the instrument itse…
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4E. Cancellation
5I. Party requesting cancellation
Art. 971Art. 971 1 A negotiable security that has been lost may be cancelled by the court Term in accordance with No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 109; BBl 2017 399).…
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5II. Procedure, effect
Art. 972Art. 972 1 Following cancellation of the instrument, the beneficiary may exercise his right even without the instrument or request the issue of a new instrument. 2 In other respects, the provisions governing the individ…
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4F. Special provisions
Art. 973Art. 973 The special provisions governing negotiable securities, such as bills of exchange, cheques and mortgage bonds, are reserved.
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4G. Collective custody, global certificate and uncertificated securities
5I. Collective custody of negotiable securities
Art. 973aArt. 973a Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008, in force since 1 Jan. 2010 (AS 2009 3577; BBl 2006 9315). Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008,…
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5II. Global certificate
Art. 973bArt. 973b Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008, in force since 1 Jan. 2010 (AS 2009 3577; BBl 2006 9315). Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008,…
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5III. Uncertificated securities
Art. 973cArt. 973c Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008, in force since 1 Jan. 2010 (AS 2009 3577; BBl 2006 9315). Inserted by Annex No 3 of the Uncertificated Securities Act of 3 Oct. 2008,…
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4H. Ledger-based securities
5I. Establishment
Art. 973dArt. 973d Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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5II. Effects
Art. 973eArt. 973e Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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5III. Transfer
Art. 973fArt. 973f Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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5IV. Collateral
Art. 973gArt. 973g Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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5V. Cancellation
Art. 973hArt. 973h Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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5VI. Information and liability
Art. 973iArt. 973i Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of the…
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3Section Two: Registered Securities
4A. Definition
Art. 974Art. 974 A negotiable security is deemed a registered security if it is made out to a named person but is neither made out to order nor legally declared to be an instrument to order.
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4B. Evidence of creditor’s right
5I. As a general rule
Art. 975Art. 975 1 The obligor is obliged to render performance only to a person who is the bearer of the instrument and who can show that he is the person in whose name the instrument is registered or the legal successor of su…
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5II. With qualified bearer securities
Art. 976Art. 976 Where the obligor under the registered security has reserved the right to render performance to any bearer of the instrument, he is released from his obligation by rendering performance in good faith to such a…
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4C. Cancellation
Art. 977Art. 977 1 Where no special provision has been made, registered securities are cancelled in accordance with the provisions governing bearer securities. 2 The obligor may make provision in the instrument for a simplified…
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3Section Three: Bearer Securities
4A. Definition
Art. 978Art. 978 1 A negotiable security is deemed a bearer security if the wording or form of the instrument shows that the current bearer is recognised as the beneficiary. 2 However, the obligor is no longer permitted to pay…
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4B. Obligor’s defences
5I. In general
Art. 979Art. 979 1 Against a claim deriving from a bearer security, the obligor may plead only such defences as contest the validity of the instrument or arise from the instrument itself and those available to him personally ag…
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5II. In the case of bearer coupons
Art. 980Art. 980 1 Against a claim deriving from a bearer coupon, the obligor may not plead the defence that the debt principal has been redeemed. 2 However, when redeeming the debt principal, the obligor is entitled to retain…
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4C. Cancellation
5I. In general
61. Application
Art. 981Art. 981 1 Bearer securities, such as shares, bonds, dividend rights certificates, coupon sheets, subscription warrants for coupon sheets, but not individual coupons, are cancelled by the court at the request of the ben…
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62. Attachment order
Art. 982Art. 982 1 At the applicant’s request, the obligor under the negotiable security may be forbidden to honour the security on presentation and warned of the danger of double payment. 2 Where a coupon sheet is to be annull…
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63. Public call for presentation, time limit
Art. 983Art. 983 Where the court is satisfied that the applicant was in possession of the security but has since lost it, it issues a public notice calling on the unknown bearer to come forward and present the security within a…
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64. Form of public notice
Art. 984Art. 984 1 The call for presentation of the security must be published in the Swiss Official Gazette of Commerce. Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 4005; 2022 1…
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65. Effect
7a. Where the security is presented
Art. 985Art. 985 1 Where the lost bearer security is presented, the court sets the applicant a time limit within which to bring an action for recovery thereof. 2 Where the applicant fails to bring action within such time limit,…
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7b. Where the security is not presented
Art. 986Art. 986 1 Where the lost bearer security is not presented within the time limit, the court may cancel it or order further measures, depending on the circumstances. 2 Notice of the cancellation of a bearer security must…
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5II. Of coupons in particular
Art. 987Art. 987 1 Where individual coupons have been lost, at the request of the beneficiary the court must order that the amount be deposited with the court at maturity or immediately if the coupon is already due. 2 Where thr…
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5III. In the case of banknotes and the like
Art. 988Art. 988 Banknotes and other bearer securities issued in large numbers and payable on sight which are intended for circulation as replacement for money and made out in fixed denominations may not be cancelled.
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4D. Mortgage certificates
Art. 989Art. 989 Amended by No II 2 of the FA of 11 Dec. 2009 (Register Mortgage Certificates and other amendments to Property Law), in force since 1 Jan. 2012 (AS 2011 4637; BBl 2007 5283). Amended by No II 2 of the FA of 11 D…
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3Section Four: Bills and Notes
4A. Capacity to incur Liability as a party to a Bill
Art. 990Art. 990 A person with capacity to enter into contracts has capacity to incur liability as a party to a bill of exchange.
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4B. The Bill of Exchange
5I. Drawing and Formal Requirements of Bills of Exchange
61. Requirements
Art. 991Art. 991 A bill of exchange contains: 1. the designation ‘bill of exchange’ in the text of the instrument and in the language in which it is issued; 2. the unconditional instruction to pay a certain sum of money; 3. the…
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62. Required content lacking
Art. 992Art. 992 1 An instrument missing one of the elements stipulated in the previous article is not deemed a bill of exchange, except in the cases described in the following paragraphs. 2 A bill of exchange containing no ind…
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63. Types
Art. 993Art. 993 1 A bill of exchange may be made out to the drawer’s own order. 2 It may be drawn on the drawer himself. 3 It may be drawn for the account of a third party.
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64. Payment of domiciled bills
Art. 994Art. 994 A bill of exchange may be domiciled with a third party, at the drawee’s domicile or at another place.
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65. Promise of interest
Art. 995Art. 995 1 In a bill of exchange payable on sight or at a stated period after presentation for acceptance, the drawer may stipulate that the bill amount will bear interest. For all other bills, the interest rate comment…
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66. Discrepancy in specification of bill amount
Art. 996Art. 996 1 Where the bill amount is given in both letters and numbers, in the event of any discrepancy the amount given in letters is the valid amount. 2 Where the bill amount is given more than once in both letters and…
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67. Signatures of persons lacking capacity
Art. 997Art. 997 Where a bill of exchange bears a signature of a person lacking capacity to enter into liabilities on a bill of exchange, a forged signature, the signature of a bogus person or a signature which for whatever oth…
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68. Unauthorised signature
Art. 998Art. 998 A person who signs a bill of exchange as a representative of another without being authorised so to do is himself liable on the bill and, if he honours the bill, has the same rights as the party he purported to…
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69. Liability of the drawer
Art. 999Art. 999 1 The drawer is liable for the acceptance and payment of the bill of exchange. 2 He may disclaim liability for acceptance; any comment whereby he disclaims liability for payment is deemed unwritten.
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610. Blank bill
Art. 1000Art. 1000 Where a bill of exchange that was incomplete when it was negotiated is completed in a manner contrary to the agreed terms, such non-compliance with the agreed terms may not be invoked against the bearer unless…
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5II. Endorsement
61. Transferability
Art. 1001Art. 1001 1 Any bill of exchange may be transferred by endorsement even if it is not expressly made out to order. 2 Where the drawer has included the words “not to order” or a comment to that effect in the bill of excha…
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62. Requirements
Art. 1002Art. 1002 1 The endorsement must be unconditional. Conditions attached to the endorsement are deemed unwritten. 2 A partial endorsement is void. 3 An endorsement to the bearer is deemed a blank endorsement.
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63. Form
Art. 1003Art. 1003 1 The endorsement must be written on the bill of exchange itself or on a sheet attached thereto (annex, rider). It must be signed by the endorser. 2 The endorsement need not designate the endorsee and may cons…
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64. Effects
7a. Transfer function
Art. 1004Art. 1004 1 The endorsement transfers all rights arising from the bill of exchange. 2 If it is a blank endorsement, the bearer may: 1. add his name or the name of another person to the endorsement; 2. endorse the bill f…
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7b. Guarantee function
Art. 1005Art. 1005 1 Unless the bill contains a comment to the contrary, the endorser is liable for acceptance and payment. 2 He may forbid further endorsement of the bill; in this case he is not liable to persons to whom the bi…
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7c. Proof of bearer’s entitlement
Art. 1006Art. 1006 1 A person possessing the bill is the holder in due course providing he can demonstrate his entitlement by means of an uninterrupted sequence of endorsements, even where the last is a blank endorsement. Delete…
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65. Defences
Art. 1007Art. 1007 A person to whom a bill of exchange is presented for collection may not plead against the holder such defences as are based on his direct relations with the drawer or a previous holder unless the current holde…
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66. Procuration endorsement
Art. 1008Art. 1008 1 Where the endorsement contains the comment “value for collection”, “for collection”, “per pro.” or some other comment expressing no more than authorisation, the holder may exercise all the rights under the b…
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67. Pledging endorsement
Art. 1009Art. 1009 1 Where the endorsement contains the comment “value for security”, “value for pledge” or some other comment expressing a pledge, the holder may exercise all the rights under the bill of exchange; however, any…
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68. Subsequent endorsement
Art. 1010Art. 1010 1 An endorsement after maturity has the same effects as an endorsement prior to maturity. However, where the bill of exchange was endorsed only after protest for non-payment or after expiry of the time limit f…
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5III. Acceptance
61. Right to present bill
Art. 1011Art. 1011 The holder or any person merely in possession of the bill of exchange may present it to the drawee at his domicile for acceptance at any time prior to maturity.
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62. Presentation compulsory or prohibited
Art. 1012Art. 1012 1 The drawer may stipulate on any bill of exchange that it must be presented for acceptance, with or without a time limit for such presentation. 2 He may prohibit presentation of the bill of exchange for accep…
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63. Duty to present after-sight bills
Art. 1013Art. 1013 1 An after-sight bill must be presented for acceptance within one year of the date on which it was drawn. 2 The drawer may stipulate a shorter or longer time limit. 3 The endorser may stipulate a shorter time…
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64. Repeat presentation
Art. 1014Art. 1014 1 The drawee may request that the bill of exchange be presented to him again on the day after the first presentation. The parties may invoke any failure to comply with this requirement only if the request is m…
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65. Form of acceptance
Art. 1015Art. 1015 1 The declaration of acceptance is made on the bill of exchange. It is expressed through the word “accepted” or words to the same effect; it must be underlined by the drawee. The drawee is deemed to have decla…
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66. Restrictions on acceptance
Art. 1016Art. 1016 1 The acceptance must be unconditional; however, the drawee may limit it to a portion of the bill amount. 2 Where the declaration of acceptance contains any terms that deviate from the provisions of the bill o…
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67. Domiciliate and bill domicile
Art. 1017Art. 1017 1 Where the drawer has indicated on the bill of exchange a bill domicile other than the domicile of the drawee but without designating a third party by whom payment is to be made, the drawee may designate a th…
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68. Effect of acceptance
7a. In general
Art. 1018Art. 1018 1 Due to his acceptance, the drawee is obliged to pay the bill of exchange at maturity. 2 In the event of non-payment, the holder, even if he is the drawer, has a claim against the acceptor under the bill of e…
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7b. In the case of deletion
Art. 1019Art. 1019 1 Where the drawee has struck out the declaration of acceptance made on the bill of exchange prior to returning the bill, acceptance is deemed to have been refused. Until the opposite is proven, it is presumed…
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5IV. Bill Guarantees
61. Bill guarantor
Art. 1020Art. 1020 1 Payment of the bill amount may be secured in part or in full by means of a bill guarantee. 2 Security may be provided by a third party or even by a person whose signature has already been appended to the bil…
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62. Form
Art. 1021Art. 1021 1 The guarantee commitment is inscribed on the bill of exchange or an annex (rider) thereto. 2 It is expressed by the words “as guarantor” or a comment to that effect; it must be signed by the bill guarantor.…
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63. Effects
Art. 1022Art. 1022 1 The bill guarantor is liable in the same manner as the person for whom he has given the guarantee. 2 His commitment is valid even if the guaranteed obligation is void for any reason other than formal defect.…
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5V. Maturity
61. In general
Art. 1023Art. 1023 1 A bill of exchange may be drawn:on sight;for a specified time after sight;for a specified time after drawing;on a specified date. 2 Bills of exchange with other maturity dates or with several consecutive mat…
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62. In the case of sight bills
Art. 1024Art. 1024 1 A sight bill is due on presentation. It must be presented for payment within one year of being drawn. The drawer may stipulate a shorter or longer time limit. The endorser may stipulate a shorter time limit…
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63. In the case of after-sight bills
Art. 1025Art. 1025 1 The maturity date of an after-sight bill is determined by the date indicated in the declaration of acceptance or the protest date. 2 Where no date is indicated in the declaration of acceptance and no protest…
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64. Computation of time limits
Art. 1026Art. 1026 1 A bill of exchange made out for one or more months after it was drawn or after sight falls due on the corresponding day of the payment month. If there is no such day, the bill falls due on the last day of th…
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65. Computation by the old method
Art. 1027Art. 1027 1 Where a bill of exchange is payable on a certain date at a place where the calendar is different from that of the place of issue, the maturity date is determined according to the calendar of the bill domicil…
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5VI. Payment
61. Presentation for payment
Art. 1028Art. 1028 1 The holder of a bill of exchange payable on a specific date or a specified time after it was drawn or after sight must present the bill for payment on the payment date or one of the two subsequent working da…
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62. Right to receipt, part payment
Art. 1029Art. 1029 1 The drawee may require the holder to surrender the receipted bill of exchange against payment. 2 The holder may not refuse part payment. 3 Where a part payment is made, the drawee may insist that it be noted…
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63. Payment before and at maturity
Art. 1030Art. 1030 1 The holder of the bill of exchange is not obliged to accept payment before maturity. 2 The drawee pays before maturity at his own risk. 3 A person paying at maturity is released from his obligations provided…
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64. Payment in foreign currency
Art. 1031Art. 1031 1 Where the bill of exchange is denominated in a currency other than that of the bill domicile, the bill amount may be paid in the national currency at its value as at the maturity date. Where the obligor dela…
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65. Deposit
Art. 1032Art. 1032 Where the bill of exchange is not presented for payment within the time limit laid down in Article 1028, the obligor may deposit the bill amount with the competent authority at the risk and expense of the hold…
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5VII. Recourse in the event of Non-Acceptance and Non‑Payment
61. Recourse of the holder
Art. 1033Art. 1033 This Art. consists of a single paragraph in the French and Italian texts. This Art. consists of a single paragraph in the French and Italian texts. 1 In the event of non-payment of a bill at maturity, the hold…
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62. Protest
7a. Time limits and requirements
Art. 1034Art. 1034 1 Any refusal of acceptance or of payment must be declared by public deed (protest for non-acceptance or for non-payment). 2 Protest for non-acceptance must be made within the time limit applicable for present…
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7b. Responsibility
Art. 1035Art. 1035 Such protest must be made by a specially authorised notary or official body.
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7c. Content
Art. 1036Art. 1036 1 The protest contains: 1. the name of the person or of the business for whom and against whom the protest is made; 2. a statement that a request was made without success to the person or company against whom…
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7d. Form
Art. 1037Art. 1037 1 The protest is made on a separate sheet attached to the bill of exchange. 2 Where the protest involves the presentation of several duplicates of the same bill of exchange or presentation of the original inst…
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7e. For partial acceptance
Art. 1038Art. 1038 Where the bill of exchange is accepted for only part of the bill amount and protest is made for that reason, a copy must be made of the bill of exchange and the protest made on such copy.
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7f. Against several persons
Art. 1039Art. 1039 Where performance of a bill obligation is required of several liable parties, only one instrument is required for the protests involved.
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7g. Copy of the protest document
Art. 1040Art. 1040 1 The notary or official body making the protest must make a copy of the protest document. 2 The following must be indicated on this copy: 1. the amount of the bill of exchange; 2. the maturity date; 3. the pl…
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7h. Defective protest
Art. 1041Art. 1041 A protest signed by the competent notary or official body is valid even if not made in accordance with the regulations or if the information it contains is inaccurate.
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63. Notification
Art. 1042Art. 1042 1 The holder must notify the immediately preceding endorser and the drawer of the lack of acceptance or payment within four working days of the date on which the protest was made or, in the case of the comment…
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64. Waiver of protest
Art. 1043Art. 1043 1 By appending and signing the comment “No protest” or words to the same effect on the bill of exchange, the drawer and any endorser or bill guarantor may release the holder from his obligation to arrange prot…
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65. Joint and several liability of the parties
Art. 1044Art. 1044 1 All parties who have drawn, accepted, endorsed or guaranteed a bill of exchange are liable as co-obligors towards the holder. 2 The holder may resort to any of them individually, severally or all together wi…
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66. Nature of recourse
7a. By the holder
Art. 1045Art. 1045 1 By way of recourse the holder may claim: 1. the bill amount, provided the bill has not been accepted or honoured, with any agreed interest; 2. interest at a rate of six per cent since the maturity date; 3. t…
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7b. By the party honouring the bill
Art. 1046Art. 1046 A party that has honoured the bill of exchange may claim from his preceding endorsers: 1. the full amount he paid; 2. the interest on such amount at a rate of six per cent since the date on which the bill was…
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7c. Right to take possession of bill, protest and receipt
Art. 1047Art. 1047 1 Any party liable on a bill against whom a recourse claim is or may be made is entitled to insist that the bill of exchange together with the protest and a receipted invoice be handed over to him against paym…
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7d. In respect of partial acceptance
Art. 1048Art. 1048 Where recourse is had following a partial acceptance, the party paying the unaccepted portion of the bill amount may insist that this be noted on the bill of exchange and a receipt for such portion be issued t…
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7e. Re-exchange bill
Art. 1049Art. 1049 1 A party with right of recourse may, where no comment to the contrary exists, exercise such right by drawing a new bill of exchange (re-exchange bill) on one of his preceding endorsers which is payable on sig…
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67. Invalidation
7a. In general
Art. 1050Art. 1050 1 In the event that the holder fails to comply with the time limits for presentation of a sight bill or an after-sight bill, for protest for non-acceptance or for non-payment, for presentation for payment of b…
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7b. Force majeure
Art. 1051Art. 1051 1 Where insuperable obstacles (statutory provisions enacted by a state or some other instance of force majeure) militate against the timely presentation of the bill of exchange or timely protest, the time limi…
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7c. Unjust enrichment
Art. 1052Art. 1052 1 To the extent that the drawer of a bill of exchange and the acceptor are unjustly enriched to the detriment of the holder, they remain obliged to the holder even where their bill liability has prescribed or…
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5VIII. Devolution of Cover
Art. 1053Art. 1053 1 Where the drawer of a bill of exchange has been declared insolvent, any claim he holds under civil law against the drawee for restitution of cover or reimbursement of amounts paid devolves on the holder of t…
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5IX. Act of Honour
61. General provisions
Art. 1054Art. 1054 1 The drawer and any endorser or bill guarantor may indicate a person to act as acceptor or payer in case of need. 2 Subject to the conditions set out below, the bill of exchange may be accepted or paid for ho…
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62. Acceptance for honour
7a. Requirements, position of the holder
Art. 1055Art. 1055 1 Acceptance for honour is permitted in all cases in which the holder has a right of recourse before maturity, except where presentation of the bill for acceptance is prohibited. 2 Where the bill of exchange i…
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7b. Form
Art. 1056Art. 1056 The acceptance for honour is noted on the bill of exchange; it must be signed by the acceptor for honour. The declaration of acceptance must indicate the person for whom the acceptance for honour is made; abse…
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7c. Liability of the acceptor for honour, effect on right of recourse
Art. 1057Art. 1057 1 A person accepting a bill for honour is liable to the holder and the subsequent endorsers of the person for whom he intervened in the same manner as said person. 2 In spite of the acceptance for honour the p…
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63. Payment for honour
7a. Requirements
Art. 1058Art. 1058 1 Payment for honour is permitted in all cases in which the holder has a right of recourse at or before maturity. 2 The payment for honour must comprise the full amount payable by the party liable on the bill…
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7b. Obligation of the holder
Art. 1059Art. 1059 1 Where the bill of exchange is accepted for honour by persons resident at the bill domicile or the persons indicated on the bill as being willing to pay in case of need are resident at the bill domicile, the…
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7c. Consequence of refusal
Art. 1060Art. 1060 Where the holder refuses payment for honour, he forfeits his right of recourse against those who would have been released.
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7d. Right to take possession of bill, protest and receipt
Art. 1061Art. 1061 1 A note that the payment for honour has been received must be made on the bill of exchange, indicating the party for whom the payment was made. In the absence of such an indication, the payment is deemed made…
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7e. Devolution of the holder’s rights; multiple payments for honour
Art. 1062Art. 1062 1 The payer for honour acquires the rights under the bill against the party for whom he paid and against those liable to said party under the bill. However, he is not entitled to endorse it further. 2 The subs…
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5X. Production of Multiple Duplicates and Copies of Bills of Exchange
61. Duplicates
7a. Right to make duplicates
Art. 1063Art. 1063 1 The bill of exchange may be issued in multiple identical duplicates. 2 Such duplicates must be given serial numbers within the text on the instrument; otherwise, each duplicate counts as a separate bill of e…
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7b. Relationship between duplicates
Art. 1064Art. 1064 1 Where payment is made on one duplicate of the bill, the rights under all others are extinguished even if they do not bear a comment to the effect that payment on one renders all the others invalid. However,…
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7c. Acceptance comment
Art. 1065Art. 1065 1 Where one duplicate has been sent for acceptance, a note must be made on the others of the name of the person now in possession of the despatched duplicate. The latter is obliged to surrender it to the right…
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62. Copies
7a. Form and effect
Art. 1066Art. 1066 1 Every holder of a bill of exchange is entitled to make copies of it. 2 The copy must be an exact reproduction of the original instrument with endorsements and all other notes and comments appended thereto. I…
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7b. Surrender of the original bill
Art. 1067Art. 1067 1 The custodian of the original bill must be indicated on the copy. The custodian is obliged to surrender the original bill to the rightful holder of the copy. 2 Where he refuses to surrender it, the holder ha…
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5XI. Amendments to the Bill of Exchange
Art. 1068Art. 1068 Where the text of a bill of exchange is amended, those persons who append their signature to the bill after such amendment are liable in accordance with the amended text. Those who signed earlier are liable in…
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5XII. Prescription
61. Prescriptive periods
Art. 1069Art. 1069 1 The claims against the acceptor under the bill of exchange prescribe three years after the maturity date. 2 The claims of the holder against the endorser and against the drawer prescribe one year after the d…
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62. Interruption
7a. Grounds
Art. 1070Art. 1070 The prescriptive period is interrupted by commencement of action on the bill, submission of an application for debt enforcement proceedings, service of a third-party notice or petition in insolvency.
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7b. Effects
Art. 1071Art. 1071 1 The interruption of the prescriptive period is effective only against the party in regard to whom the fact causing the interruption occurred. 2 On interruption of the prescriptive period, a new prescriptive…
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5XIII. Cancellation
61. Provisional measures
Art. 1072Art. 1072 1 A person who has lost a bill of exchange may request the court to prohibit the drawee from paying the bill. Amended by Annex No 5 of the Civil Jurisdiction Act of 24 March 2000, in force since 1 Jan. 2001 (A…
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62. Known holder
Art. 1073Art. 1073 1 Where the holder of the bill of exchange is known, the court sets the applicant an appropriate time limit within which to bring action for surrender thereof. 2 Where the applicant fails to bring such action…
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63. Unknown holder
7a. Duties of the applicant
Art. 1074Art. 1074 1 Where the holder of the bill of exchange is known, the court may be asked to cancel it. 2 The party applying for cancellation must satisfy the court that he possessed and lost the bill of exchange and produc…
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7b. Public call for presentation
Art. 1075Art. 1075 Where the court is satisfied that the applicant was in possession of the bill of exchange but has since lost it, it issues a public notice calling on the unknown holder to come forward and present the bill wit…
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7c. Time limits
Art. 1076Art. 1076 1 The time limit for presentation must be at least three months and no more than one year. 2 However, the court is not bound by the minimum duration of three months if, in the case of overdue bills, the statut…
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7d. Publication
Art. 1077Art. 1077 1 The call for presentation of the bill of exchange must be published in the Swiss Official Gazette of Commerce. Amended by No I of the FA of 19 June 2020 (Company Law), in force since 1 Jan. 2023 (AS 2020 400…
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64. Effect
7a. If the bill is presented
Art. 1078Art. 1078 1 Where the lost bill of exchange is presented, the court sets the applicant a time limit within which to bring action for surrender of the bill. 2 Where the applicant fails to bring action within such time li…
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7b. If the bill is not presented
Art. 1079Art. 1079 1 Where the lost bill of exchange is not presented within the fixed time limit, the court must pronounce its cancellation. 2 Following cancellation of the bill of exchange, the applicant may still assert his c…
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65. Court orders
Art. 1080Art. 1080 1 Even before the cancellation, the court may order the acceptor to deposit the bill amount or even to pay it against security. 2 Such security is liable to the bona fide acquirer of the bill of exchange. It i…
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5XIV. General Provisions
61. Setting time limits
7a. Holidays
Art. 1081Art. 1081 1 Where the maturity date of a bill of exchange falls on a Sunday or a public holiday, payment may not be demanded until the following working day. Likewise, all other actions relating to the bill of exchange,…
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7b. Computing time limits
Art. 1082Art. 1082 When computing statutory time limits or time limits indicated on the bill of exchange, the day on which they commence is not included.
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7c. Exclusion of days of respite
Art. 1083Art. 1083 Days of respite, whether statutory or by court order, are not recognised.
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62. Place for actions in connection with bills of exchange
Art. 1084Art. 1084 1 The correct place at which to present bills of exchange for acceptance or payment, to make protest, to submit a request for issue of a duplicate bill and to take all other bill-related actions in respect of…
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63. Signature by hand; blind person’s signature
Art. 1085Art. 1085 1 Declarations in respect of bills of exchange must be signed by hand. 2 The signature by hand may not be replaced by a mechanical reproduction thereof, by a mark, even if authenticated, or by any other form o…
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5XV. Applicable Jurisdiction
61. Capacity to incur liability as a party to a bill
Art. 1086Art. 1086 1 A person's capacity to incur liability as a party to a bill is determined according to the law of the country of which he is a citizen. Where such law provides that the law of a different country is definiti…
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62. Form and time limits of declaration on bills of exchange
7a. In general
Art. 1087Art. 1087 1 The form of a declaration on a bill of exchange is determined according to the law of the country in whose territory the declaration was signed. 2 However, where a declaration on a bill of exchange that is i…
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7b. Actions to exercise and safeguard rights under bills of exchange
Art. 1088Art. 1088 The formal requirements and time limits for protest and the formal requirements for other actions to exercise or safeguard rights under bills of exchange are determined according to the law of the country in w…
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7c. Exercise of right of recourse
Art. 1089Art. 1089 The time limits for exercising rights of recourse are determined for all interested parties by the law of the place in which the bill of exchange was drawn.
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63. Effect of declarations on bills of exchange
7a. In general
Art. 1090Art. 1090 1 The effects of declarations of commitment made by the acceptor of a bill of exchange and by the maker of a promissory note are determined according to the law of the bill domicile or place of payment. 2 The…
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7b. Partial acceptance and part payment
Art. 1091Art. 1091 The law of the bill domicile determines whether the acceptance of a bill of exchange may be limited to part of the bill amount and whether the holder is or is not obliged to accept a part payment.
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7c. Payment
Art. 1092Art. 1092 The payment of a bill of exchange at maturity, in particular the computation of the maturity date and the payment date, and the payment of bills denominated in a foreign currency are determined according to th…
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7d. Claims for unjust enrichment
Art. 1093Art. 1093 Claims for unjust enrichment against the drawee, the domiciliate and the person or firm for whose account the drawer drew the bill are determined according to the law of the country in whose territory these pe…
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7e. Devolution of cover
Art. 1094Art. 1094 The law of the place of issue determines whether the holder of a bill of exchange acquires the underlying claim.
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7f. Annulment
Art. 1095Art. 1095 The law of the bill domicile determines the measures to be taken in the event of the loss or theft of a bill of exchange.
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4C. The Promissory Note
51. Requirements
Art. 1096Art. 1096 A promissory note contains: 1. the designation ‘promissory note’ in the text of the instrument and in the language in which it is issued; 2. the unconditional promise to pay a certain sum of money; 3. the due…
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52. Required content lacking
Art. 1097Art. 1097 1 An instrument missing one of the elements stipulated in the previous Article is not deemed a promissory note, except in the cases described in the following paragraphs. 2 A promissory note containing no indi…
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53. Reference to bill of exchange
Art. 1098Art. 1098 1 The provisions governing the following aspects of bills of exchange also apply to promissory notes, unless they run counter to the essential nature of the latter: endorsement (Art. 1001–1010); maturity (Art.…
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54. Liability of the maker; presentation for sight
Art. 1099Art. 1099 1 The maker of a promissory note is liable in the same manner as the acceptor of a bill of exchange. 2 Promissory notes made out for a specified time after sight must be presented for sight to the maker within…
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3Section Five: The Cheque
4I. Issue and Formal Requirements of Cheques
51. Requirements
Art. 1100Art. 1100 A cheque contains: 1. the designation ‘cheque’ in the text of the instrument and in the language in which it is issued; 2. the unconditional instruction to pay a certain sum of money; 3. the name of the person…
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52. Required content lacking
Art. 1101Art. 1101 1 An instrument missing one of the elements stipulated in the previous Article is not deemed a cheque, except in the cases described in the following paragraphs. 2 Where no other specific place is mentioned, t…
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53. Capacity to act as drawee
Art. 1102Art. 1102 1 On cheques payable in Switzerland, only a banker may be designated as the drawee. 2 A cheque drawn on another person is deemed to be merely an instrument ordering payment.
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54. Cover requirement
Art. 1103Art. 1103 1 A cheque may be issued only where the drawer holds assets with the drawee and has the right to dispose of such assets by means of cheques pursuant to an explicit or tacit agreement. However, the instrument’s…
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55. Exclusion of acceptance
Art. 1104Art. 1104 The cheque may not be accepted. An acceptance comment appended to the cheque is deemed unwritten.
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56. Designation of payee
Art. 1105Art. 1105 1 The cheque may be made payable to: a specific person, with or without the explicit comment “to order”; a specific person, with the comment “not to order” or a comment to that effect; the bearer. 2 Where the…
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57. Interest comment
58. Paying agents, domiciled cheques
Art. 1107Art. 1107 The cheque may be made payable by a third party, at the drawee’s domicile or at another place, providing the third party is a banker.
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4II. Transfer
51. Transferability
Art. 1108Art. 1108 1 A cheque made payable to a specific person with or without the explicit comment “to order” may be transferred by endorsement. 2 A cheque made payable to a specific person with or without the explicit comment…
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52. Requirements
Art. 1109Art. 1109 1 The endorsement must be unconditional. Conditions attached to the endorsement are deemed unwritten. 2 A partial endorsement is void. 3 Likewise, an endorsement by the drawee is void. 4 An endorsement to the…
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53. Proof of bearer’s entitlement
Art. 1110Art. 1110 A person possessing a cheque transferred by endorsement is deemed the holder in due course providing he can demonstrate his entitlement by means of an uninterrupted sequence of endorsements, even where the las…
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54. Bearer cheque
Art. 1111Art. 1111 An endorsement on a bearer cheque renders the endorser liable in accordance with the provisions governing recourse, albeit without transforming the instrument into a cheque to order.
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55. Lost cheques
Art. 1112Art. 1112 Where the cheque was somehow lost by a former bearer, a new bearer who has gained possession of the cheque, whether it is a bearer cheque or a cheque transferable by endorsement and the bearer can demonstrate…
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56. Rights stemming from subsequent endorsement
Art. 1113Art. 1113 1 Where the cheque was endorsed only after protest has been made or equivalent action taken or after expiry of the time limit for presentation, the endorsement only has the effects of a normal assignment. 2 Un…
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4III. Cheque Guarantees
Art. 1114Art. 1114 1 Payment of the cheque amount may be secured in part or in full by means of a cheque guarantee. 2 Such security may be provided by a third party, with exception of the drawee, or even by a person whose signat…
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4IV. Presentation and Payment
51. Maturity
Art. 1115Art. 1115 1 The cheque is payable on sight. Any contrary indication is deemed unwritten. 2 A cheque presented for payment prior to the issue date indicated on the cheque is payable on the date on which it is presented.
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52. Presentation for payment
Art. 1116Art. 1116 1 A cheque payable in the country in which it was issued must be presented for payment within eight days. 2 A cheque payable in a country other than the country in which it was issued must be presented within…
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53. Computation by the old method
Art. 1117Art. 1117 Where a cheque is payable at a place where the calendar is different from that of the place of issue, the issue date is determined according to the calendar of the place of payment.
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54. Delivery to clearing house
Art. 1118Art. 1118 Delivery of the cheque to a clearing house recognised by the Swiss National Bank is equivalent to presentation for payment. Amended by Annex No II 2 of the National Bank Act of 3 Oct. 2003, in force since 1 Ma…
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55. Revocation
6a. In general
Art. 1119Art. 1119 1 A revocation of the cheque takes effect only after expiry of the time limit for presentation. 2 Where the cheque is not revoked, the drawee may make payment even after expiry of the time limit for presentati…
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6b. Death, incapacity, bankruptcy
Art. 1120Art. 1120 The validity of the cheque is unaffected even where the drawer dies, loses his capacity to act or becomes bankrupt after the cheque was issued.
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56. Verification of endorsements
Art. 1121Art. 1121 A drawee honouring a cheque transferred by endorsement is obliged to check that the sequence of endorsements is correct but is not required to verify the signatures of the endorsers.
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57. Payment in foreign currency
Art. 1122Art. 1122 1 Where the cheque is denominated in a currency other than that of the place of payment, the cheque amount may be paid in the national currency at its value as at the date of presentation. Where payment is not…
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4V. The Crossed Cheque and the Account-Payee-Only Cheque
51. Crossed cheques
6a. Definition
Art. 1123Art. 1123 1 The drawer and any bearer may cross the cheque with the effects envisaged in Article 1124. 2 A cheque is crossed by drawing two parallel lines on its obverse. Such crossing may be general or specific. 3 The…
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6b. Effects
Art. 1124Art. 1124 1 A generally crossed cheque may be paid by the drawee only to a banker or a client of the drawee. 2 A specifically crossed cheque may be paid by the drawee only to the designated banker or, where the latter i…
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52. Account-payee-only cheques
6a. In general
Art. 1125Art. 1125 1 The drawer and any bearer of a cheque may prohibit payment of the cheque in cash by appending the comment “account payee only” or a comment to that effect diagonally across the obverse of the cheque. 2 In th…
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6b. Bearer’s rights in the event of insolvency, suspension of payments, compulsory execution
Art. 1126Art. 1126 1 However, where the drawee has been declared insolvent or has suspended its payments or debt enforcement proceedings have been brought against it without success, the bearer of an account-payee-only cheque ha…
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6c. Bearer’s rights in the event of refusal of account credit or settlement
Art. 1127Art. 1127 Further, the bearer of an account-payee-only cheque has a right of recourse where he can show that the drawee has refused to make the account credit unconditionally or that the cheque has been declared unfit f…
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4VI. Recourse for Non-Payment
51. Bearer’s rights of recourse
Art. 1128Art. 1128 The bearer may have recourse against the endorser, the drawer and the other parties liable for the cheque if it is not honoured on timely presentation and such refusal of payment has been established: 1. by pu…
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52. Protest, time limits
Art. 1129Art. 1129 1 The protest or equivalent declaration must be made before the time limit for presentation expires. 2 Where the cheque is presented on the last day of the time limit, the protest or equivalent declaration may…
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53. Object of recourse
Art. 1130Art. 1130 By way of recourse, the bearer may claim: 1. the cheque amount, provided the cheque has not been honoured; 2. interest at a rate of six per cent since the date of presentation; 3. the costs of the protest or e…
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54. Exceptions in the case of force majeure
Art. 1131Art. 1131 1 Where insuperable obstacles (statutory provisions enacted by a state or some other instance of force majeure) militate against the timely presentation of the cheque or timely protest or equivalent declaratio…
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4VII. Forged Cheques
Art. 1132Art. 1132 The losses arising from payment of a forged or falsified cheque are borne by the drawee, provided that the drawer named on the cheque is not at fault, such as through negligence in the safekeeping of blank che…
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4VIII. Duplicates of a Cheque
Art. 1133Art. 1133 Cheques may be issued in several identical duplicates if they are not made out to the bearer and are payable in a country other than the country of issue or in an overseas territory belonging to the country of…
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4IX. Prescription
Art. 1134Art. 1134 1 The bearer’s rights of recourse against the endorser, the drawer and the other parties liable prescribe six months after the time limit for presentation expires. 2 The rights of recourse of one liable party…
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4X. General Provisions
51. Definition of ‘banker’
Art. 1135Art. 1135 For the purposes of this Section, the term ‘banker’ is understood to mean any institution subject to the Federal Act of 8 November 1934SR 952.0 on Banks and Savings Banks. SR 952.0
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52. Setting time limits
6a. Holidays
Art. 1136Art. 1136 1 The presentation and protest of a cheque must take place on a working day. 2 Where the last day of a time limit within which an action in connection with the cheque must be taken, in particular presentation,…
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6b. Computing time limits
Art. 1137Art. 1137 When computing the time limits envisaged in this law, the day on which they commence is not included.
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4XI. Applicable Jurisdiction
51. Capacity to act as drawee of a cheque
Art. 1138Art. 1138 1 A person's capacity to act as drawee of a cheque is determined according to the law of the country in which it is payable. 2 Where under such law the cheque is void for reasons pertaining to the person of th…
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52. Form and time limits for declarations on cheques
Art. 1139Art. 1139 1 The form of a declaration on a cheque is determined according to the law of the country in whose territory such declaration was signed. However, compliance with the formal requirements laid down by the law o…
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53. Effect of cheque declarations
6a. Law of the place of issue
Art. 1140Art. 1140 The effects of cheque declarations are determined pursuant to the law of the country in whose territory such declarations were signed.
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6b. Law of the place of payment
Art. 1141Art. 1141 The law of the country in whose territory the cheque is payable determines: 1. whether the cheque is necessarily payable on sight or whether it may be drawn for a specified time after sight and what the effect…
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6c. Law of domicile
Art. 1142Art. 1142 A claim for unjust enrichment against the drawee or the domiciliate is determined according to the law of the country in whose territory these persons are resident.
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4XII. Applicability of the Law on Bills of Exchange
Art. 1143Art. 1143 1 The following provisions of the law on bills of exchange are also applicable to cheques: 1. Article 990 on the capacity to incur liability as party to a bill; 2. Article 993 on bills of exchange made out to…
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4XIII. Reservation of Specific Law
Art. 1144Art. 1144 The special provisions governing Swiss post office cheques are reserved.
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3Section Six: Bill-like Securities and Other Instruments to Order
4A. In general
5I. Requirements
Art. 1145Art. 1145 A negotiable security is deemed an instrument to order if it is made out to order or declared by law to be an instrument to order.
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5II. Defences of the obligor
Art. 1146Art. 1146 1 Against a claim deriving from an instrument to order, the obligor may plead only such defences as contest the validity of the instrument or arise from the instrument itself and those available to him persona…
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4B. Bill-like securities
5I. Payment instructions to order
61. In general
Art. 1147Art. 1147 Where a payment instruction is not designated as a bill of exchange in the text appearing on the instrument itself but is expressly made out to order and satisfies all the other requirements of a bill of excha…
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62. No duty to accept
Art. 1148Art. 1148 1 The payment instruction to order must not be presented for acceptance. 2 If it is nevertheless presented but acceptance is refused, the bearer does not have right of recourse on these grounds.
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63. Consequences of acceptance
Art. 1149Art. 1149 1 Where the payment instruction to order is accepted voluntarily, the acceptor of the payment instruction counts as the acceptor of a bill of exchange. 2 However, the bearer may not have recourse before maturi…
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64. No enforcement of bills of exchange
Art. 1150Art. 1150 The provisions of the Debt Collection and Bankruptcy Act of 11 April 1889SR 281.1 governing the enforcement of bills of exchange do not apply to payment instructions to order. SR 281.1
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5II. Promise to pay to order
Art. 1151Art. 1151 1 Where a promise to pay is not designated as a promissory note in the text appearing on the instrument itself but is expressly made out to order and satisfies all the other requirements of a promissory note,…
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4C. Other endorsable securities
Art. 1152Art. 1152 1 Instruments whereby the signatory undertakes to pay certain sums of money or deliver certain quantities of fungibles with reference to place, time and total amount may, if they are expressly made out to orde…
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3Section Seven: Documents of Title to Goods
4A. Requirements
5I. In general
Art. 1153Art. 1153 Documents of title to goods issued by a warehouse keeper or carrier as negotiable securities must bear: 1. the place and date of issue and the signature of the issuer; 2. the name and address of the issuer; 3.…
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5II. Equivalent instruments in security ledgers
Art. 1153aArt. 1153a Inserted by No I 1 of the FA of 25 Sept. 2020 on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, in force since 1 Feb. 2021 (AS 2021 33; BBl 2020 233). Inserted by No I 1 of th…
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4B. The warrant
Art. 1154Art. 1154 1 Where one of two or more documents of title to goods is to serve the purpose of establishing a lien, it must be designated as a warrant and in all other respects take the form of a document of title to goods…
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4C. Significance of the formal requirements
Art. 1155Art. 1155 1 Bills and certificates issued in respect of stored goods or freight that do not satisfy the formal requirements of documents of title to goods are not recognised as negotiable securities, but are deemed to b…
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2Title Thirty-Four: Bonds
3Section One: ...
Art. 1156Art. 1156 Repealed by Annex No 1 of the Financial Services Act of 15 June 2018, with effect from 1 Jan. 2020 (AS 2019 4417; BBl 2015 8901). Repealed by Annex No 1 of the Financial Services Act of 15 June 2018, with effe…
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3Section Two: Community of Bond Creditors
4A. Requirements
Art. 1157Art. 1157 1 Where bonds with uniform conditions are offered directly or indirectly for public subscription by a borrower whose domicile or commercial office is in Switzerland, by operation of law the creditors form a co…
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4B. Bond representative
5I. Appointment
Art. 1158Art. 1158 1 Representatives appointed under the bond issue conditions are, unless otherwise provided, deemed to be representatives of both the community of creditors and the borrower. 2 The creditors’ meeting may elect…
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5II. Powers
61. In general
Art. 1159Art. 1159 1 The representative has such powers as are conferred on him by law, the bond issue conditions or the creditors’ meeting. 2 His duties are to request that the borrower convene a creditors’ meeting where the co…
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62. Monitoring of the borrower
Art. 1160Art. 1160 1 Where the borrower is in arrears in the fulfilment of his obligations under the bond issue, the representative of the community of creditors is entitled to obtain from the borrower all information of interes…
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63. In the case of bonds secured by a charge
Art. 1161Art. 1161 1 Where a representative of the borrower and the creditors has been appointed for a bond issue secured by a land charge or a charge on chattels, he has the same powers as a pledgee under a land charge. 2 The r…
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5III. Lapse of authority
Art. 1162Art. 1162 1 The creditors’ meeting may revoke or modify the authority conferred on a representative at any time. 2 The authority of a representative appointed under the bond issue conditions may be revoked or modified a…
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5IV. Costs
Art. 1163Art. 1163 1 The costs of all representative arrangements envisaged in the bond issue conditions are borne by the borrower. 2 The costs of representation appointed by the community of creditors are covered by payments ma…
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4C. Creditors’ meeting
5I. In general
Art. 1164Art. 1164 1 The community of creditors is authorised within the bounds of the law to take all measures required to safeguard the collective interests of the bond creditors, in particular as regards any financial difficu…
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5II. Convocation
61. In general
Art. 1165Art. 1165 1 The creditors’ meeting is convened by the borrower. 2 The borrower is obliged to convene it within 20 days if so requested by bond creditors together holding at least one-twentieth of the bond capital in cir…
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62. Moratorium
Art. 1166Art. 1166 1 From the date on which the invitation to the creditors’ meeting is duly published until the final outcome of the composition proceedings, all due claims of the bond creditors are subject to a stay of enforce…
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5III. Holding the meeting
61. Voting right
Art. 1167Art. 1167 1 Each owner of a bond or his representative, or in the case of bonds under a usufruct either the usufructuary or his representative, has the right to vote. However, the usufructuary is liable in damages to th…
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62. Representation of individual bond creditors
Art. 1168Art. 1168 1 Representation of bond creditors requires a written power of attorney, unless such representation has its basis in law. 2 The borrower is excluded from representing bond creditors with right to vote.
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5IV. Procedure
Art. 1169Art. 1169 The Federal Council shall enact provisions governing convening the creditors’ meeting, giving notice of the agenda, proving entitlement to participate in the creditors’ meeting, chairing the general meeting an…
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4D. Resolutions of the community of creditors
5I. Encroachment on creditors’ rights
61. Admissibility and required majority
7a. In the case of only one community of creditors
Art. 1170Art. 1170 1 A majority of at least two-thirds of the bond capital in circulation is required to pass a valid resolution in connection with the following measures: 1. moratorium on interest for up to five years, with the…
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7b. In the case of several communities of creditors
Art. 1171Art. 1171 1 Where there is more than one community of creditors, the borrower may propose one or more of the measures described in the previous Article to the different communities of creditors simultaneously, subject t…
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7c. Determining the majority
Art. 1172Art. 1172 1 When determining the total bond capital in circulation, bonds that do not confer right to vote shall be disregarded. 2 Where a motion put to the creditors’ meeting fails to attain the requisite number of vot…
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62. Restrictions
7a. In general
Art. 1173Art. 1173 1 No bond creditor may be required by resolution of the community of creditors to tolerate an encroachment on the creditors’ rights other than those envisaged in Article 1170 or to make payments that were neit…
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7b. Equal treatment
Art. 1174Art. 1174 1 The persons making up a community of creditors must all be equally affected by any resolution to adopt compulsory measures, unless every disadvantaged creditor expressly agrees to such measures. 2 The rankin…
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7c. Statement and balance sheet
Art. 1175Art. 1175 Amended by No I 3 of the FA of 16 Dec. 2005 (Law on Limited Liability Companies and Amendments to the Law on Companies limited by Shares, Cooperatives, the Commercial Register and Business Names), in force sin…
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63. Official approval
7a. In general
Art. 1176Art. 1176 1 Resolutions involving an encroachment on creditors’ rights are effective and binding on the bond creditors who did not vote in favour of them only if they have been approved by the higher cantonal compositio…
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7b. Requirements
Art. 1177Art. 1177 Official approval may be refused only where: 1. the provisions governing the convocation of the creditors’ meeting and its adoption of resolutions were infringed; 2. it transpires that a resolution intended to…
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7c. Appeal
Art. 1178Art. 1178 1 Once approval has been given, it may be challenged as illegal or inappropriate within 30 days before the Federal Supreme Court by any bond creditor who did not vote for the resolution, in which case the lega…
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7d. Revocation
Art. 1179Art. 1179 1 If it subsequently transpires that the resolution of the creditors’ meeting was brought about by dishonest means, at the request of a bond creditor the higher cantonal composition authority may revoke approv…
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5II. Other resolutions
61. Authority of the bond representative
Art. 1180Art. 1180 1 The consent of persons representing more than one-half of the bond capital in circulation is required to revoke or modify the authority conferred on a bond representative. 2 The same majority is required for…
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62. On other matters
Art. 1181Art. 1181 1 Resolutions which neither encroach on the creditors’ rights nor impose further material contributions on the creditors require merely an absolute majority of the votes represented, unless the law stipulates…
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63. Challenge
Art. 1182Art. 1182 Any resolution within the meaning of Articles 1180 and 1181 which contravenes the law or contractual provisions may be challenged in court by a member of the community of bond creditors who did not vote for it…
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4E. Special cases
5I. Insolvency of the borrower
Art. 1183Art. 1183 1 Where a borrower becomes insolvent, the insolvency administrators must convene a meeting of the bond creditors without delay, at which an existing representative or a representative appointed by the meeting…
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5II. Composition agreement
Art. 1184Art. 1184 1 In composition proceedings, subject to the provisions governing bonds secured by a charge, no special resolution is made by the bond creditors on their position towards the composition agreement, and their c…
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5III. Bonds issued by railway or inland waterways transport companies
Art. 1185Art. 1185 1 The provisions of this Chapter are applicable to bond creditors of railway or inland waterways transport companies, subject to the following special provisions. 2 A request for convocation of a creditors’ me…
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4F. Differing agreements
Art. 1186Art. 1186 Amended by Annex No 2 of the FA of 17 Dec. 2021 (Insolvency and Deposit Protection), in force since 1 Jan. 2023 (AS 2022 732; BBl 2020 6359). Amended by Annex No 2 of the FA of 17 Dec. 2021 (Insolvency and Dep…
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Final and transitional provisions88
Transitional Provisions to the Federal Act of 30 March 1911I. The Final Title of the Civil Code is amended as follows: ... II. This Act enters into force on 1 January 1912. The Federal Council is charged with making arrangements to publicise this Code on the basis of the provis…Direct link
1Final Provisions to the Amendment of 23 March 1962
2A. – Preferential payments on bankruptcy
Art. 1Art. 1 ... The amendments may be consulted under AS 1962 1047. The amendments may be consulted under AS 1962 1047.Direct link
2B. – Unfair competition
Art. 2Art. 2 ... The amendments may be consulted under AS 1962 1047. The amendments may be consulted under AS 1962 1047.Direct link
2C. – Transitional law
Art. 3Art. 3 1 Articles 226f, 226g, 226h, 226i and 226k These articles have now been repealed. also apply to hire purchase agreements entered into prior to the commencement of this Act. These articles have now been repealed.…Direct link
2D. – Entry into force
Art. 4Art. 4 The Federal Council determines the date on which this Act enters into force.Direct link
1Transitional Provisions to the Amendment of 16 December 2005
2A. – General rule
Art. 1Art. 1 1 The final title of the Civil Code applies to this Code unless the following provisions provide otherwise. 2 The provisions of the new Code apply to existing companies from its commencement.Direct link
2B. – Deadline for amendments
Art. 2Art. 2 1 Limited liability companies entered in the commercial register on the commencement of this Code but which do not fulfil the new requirements must amend their articles of association and regulations to the new p…Direct link
2C. – Payment of contributions
Art. 3Art. 3 1 Where in limited liability companies that are entered in the commercial register when this Act comes into force, allocations have not been made corresponding to the issue price of all capital contributions, the…Direct link
2D. – Participation certificates and dividend rights certificates
Art. 4Art. 4 1 Shares in limited liability companies that indicate a nominal value and which are recorded under liabilities on the balance sheet, but will confer no right to vote (participation certificates), are deemed after…Direct link
2E. – Own capital contributions
Art. 5Art. 5 Where limited liability companies acquired their own capital contributions before this Act comes into force, they must, provided they exceed 10 per cent of the nominal capital, sell the same or cancel the same by…Direct link
2F. – Duty to pay in further capital
Art. 6Art. 6 1 Obligations under the articles of association to pay additional capital contributions that were established before this Act comes into force and that exceed twice the nominal value of the capital contributions,…Direct link
2G. – External auditor
Art. 7Art. 7 The provisions of this Act on the external auditor apply from the first financial year that begins when this Act comes into force or thereafter.Direct link
2H. – Voting rights
Art. 8Art. 8 1 Limited liability companies that have conferred right to vote before this Act comes into force that are not dependent on the nominal value of the capital contributions are not required to amend the correspondin…Direct link
2J. – Amendment of majority requirements in the articles of association
Art. 9Art. 9 If a limited liability company, simply by reproducing the provisions of the old law, has adopted provisions in the articles of association that require qualified majorities to pass resolutions at the members' gen…Direct link
2K. – Cancellation of shares and capital contributions in the event of restructuring
Art. 10Art. 10 If, before this Act comes into force, the share capital or the nominal capital is reduced to zero for the purposes of restructuring and thereafter increased again, the membership rights of the former shareholder…Direct link
2L. – Exclusivity of registered business names
Art. 11Art. 11 The exclusivity of business names that were entered in the commercial register before this Act comes into force is assessed in accordance with Article 951 of the Code of Obligations in its version of 18 December…Direct link
Transitional Provision to the Amendment of 17 June 2011The provision in this amendment applies from the first financial year beginning on or after the date on which this amendment comes into force.Direct link
1Transitional Provision to the Amendment of 23 December 2011
2A. – General rule
Art. 1Art. 1 1 The provisions of the Final Title of the Civil CodeSR 210 apply to this Code unless the following provisions provide otherwise. SR 210 2 The provisions of the Amendment of 23 December 2011 apply to existing und…Direct link
2B. – Commercial accounting and financial reporting
Art. 2Art. 2 1 The regulations in Title Thirty-Two first apply in the financial year that begins two years after this Amendment comes into force. 2 The basis for the application of the provisions on financial reporting by lar…Direct link
1Transitional Provisions to the Amendment of 12 December 2014
2A. – General rule
Art. 1Art. 1 1 Articles 1–4 of the Final Title of the Civil CodeSR 210 apply to this Code unless the following provisions provide otherwise. SR 210 2 The provisions of the Amendment of 12 December 2014 apply to existing compa…Direct link
2B. – Adapting articles of association and regulations
Art. 2Art. 2 1 Companies entered in the commercial register when the Amendment of 12 December 2014 comes into force that do not comply with the new regulations must adapt their articles of association and regulations to the n…Direct link
2C. – Obligations to give notice
Art. 3Art. 3 1 Persons holding bearer shares when the Amendment of 12 December 2014 comes into force must comply with the obligations to give notice under Articles 697i and 697j that apply on acquiring shares 2 The deadline f…Direct link
1Transitional Provisions to the Amendment of 25 September 2015
2A. – General rule
Art. 1Art. 1 1 Articles 1–4 of the Final Title of the Civil CodeSR 210 apply to this Code unless the following provisions provide otherwise. SR 210 2 The provisions of the Amendment of 25. September 2015 apply to existing leg…Direct link
2B. – Amendment of registered business names
Art. 2Art. 2 General and limited partnerships and partnerships limited by shares that are entered in the commercial register when the Amendment of 25 September 2015 comes into force and whose business name does not comply wit…Direct link
2C. – Exclusivity of the registered business name
Art. 3Art. 3 If the business name of a general or limited partnership or partnership limited by shares was entered in the commercial register before the Amendment of 25 September 2015 comes into force, its exclusivity is asse…Direct link
1Transitional Provisions to the Amendment of 17 March 2017
2A. – General rules
Art. 1Art. 1 1 Articles 1–4 of the Final Title of the Civil CodeSR 210 apply to the Amendment of 17 March 2017, unless the following provisions provide otherwise. SR 210 2 The new law shall apply to existing legal entities on…Direct link
2B. – Registration obligation for public institutions
Art. 2Art. 2 Public institutions established before the new law comes into force and which primarily carry on a private gainful economic activity must be entered in the commercial register within two years.Direct link
1Transitional provisions to the Amendment of 21 June 2019
2A. – General provisions
Art. 1Art. 1 1 Articles 1–4 of the Final Title of the Civil CodeSR 210 apply to this Code unless the following provisions provide otherwise. SR 210 2 The provisions of the Amendment of 21 June 2019 apply on its commencement t…Direct link
2B. – Reporting exceptions to the commercial register office
Art. 2Art. 2 Companies limited by shares and partnerships limited by shares with bearer shares that have equity securities listed on a stock exchange or whose bearer shares are organised as intermediated securities must reque…Direct link
2C. – Companies without listed equity securities with bearer shares not organised as intermediated securities
31. – Scope of application
Art. 3Art. 3 Articles 4–8 apply to companies that have no equity securities listed on a stock exchange and whose bearer shares are not organised as intermediated securities, and to companies that have not requested registrati…Direct link
32. – Conversion of bearer shares into registered shares
Art. 4Art. 4 1 If, 18 months after Article 622 paragraph 1bis comes into force, a company limited by shares or partnership limited by shares still has bearer shares that are not registered in accordance with Article 622 parag…Direct link
33. – Amendment to the articles of association and entry in the commercial register
Art. 5Art. 5 1 Companies limited by shares and partnerships limited by shares, whose shares have been converted must amend their articles of association when the next opportunity arises to do so. 2 The commercial register off…Direct link
34. – Updating of the share register and suspension of rights
Art. 6Art. 6 1 Following converting bearer shares into registered shares, the company shall enter details of the shareholders that have fulfilled the obligation to give notice in Article 697i of the previous law in the share…Direct link
35. – Retrospective notice
Art. 7Art. 7 1 Shareholders who have failed to comply with their obligation to give notice in accordance with Article 697i of the previous law and whose bearer shares have been converted into registered shares in accordance w…Direct link
36. – Permanent loss of shareholder status
Art. 8Art. 8 1 Shares belonging to shareholders who have not requested the court to approve their entry in the company’s share register in accordance with Article 7 within five years of Article 622 paragraph 1bis coming into…Direct link
1Transitional Provision to the Amendment of 19 June 2020
2A. – General rule
Art. 1Art. 1 1 Articles 1–4 of the Final Title to the Civil CodeSR 210 apply to die Amendment of 19 June 2020, unless the following provisions provide otherwise. SR 210 2 The provisions of the new law become applicable to exi…Direct link
2B. – Amendment of articles of association and regulations
Art. 2Art. 2 1 Companies that are entered in the commercial register at the time that the new law comes into force but which are not in compliance with the new rules must adapt their articles of association and regulations to…Direct link
2C. – Approved capital increases and capital increases from contingent capital
Art. 3Art. 3 The previous law applies to approved capital increases and capital increases from contingent capital for which a resolution was passed before the new law comes into force. The resolutions of the general meeting m…Direct link
2D. – Gender representation
Art. 4Art. 4 1 The obligation to report in the remuneration report in accordance with Article 734f applies to the board of directors at the latest from the financial year that begins five years after the new law comes into fo…Direct link
2E. – Stay of bankruptcy
Art. 5Art. 5 A stay of bankruptcy that was granted before the new law comes into force shall until its conclusion be governed by the previous law.Direct link
2F. – Amendment of contracts under the previous law
Art. 6Art. 6 Contracts existing at the time that the new law comes into force shall be adapted to the new law within two years of it coming into force. On expiry of this period, the rules of the new law apply to all contracts.Direct link
2G. – Transparency in raw material companies
Art. 7Art. 7 Articles 964d–964h apply for the first time to the financial year that begins one year after the new law comes into force.Direct link
Transitional provision to the Amendment of 19 June 2020The provisions of Section 6 and Section 8 of Title 32 apply for the first time to the financial year that begins one year after the Amendment of 19 June 2020 comes into force.Direct link
1Final Provisions to Title Eight and Title Eightbis
Art. 1Art. 1 The Federal Decree of 30 June 1972 [AS 1972 1502, 1977 1269, 1982 1234, 1987 1189] on Measures against Abuses in Tenancy Law is repealed. [AS 1972 1502, 1977 1269, 1982 1234, 1987 1189]Direct link
Art. 2–4Art. 2–4 ... The amendments may be consulted under AS 1990 802. The amendments may be consulted under AS 1990 802.Direct link
Art. 5Art. 5 1 The provisions governing protection against termination in the renting and leasing of residential and commercial accommodation apply to all residential and commercial leases that are terminated following the co…Direct link
Art. 6Art. 6 1 This Act is subject to an optional referendum. 2 The Federal Council shall determine the commencement date.Direct link
1Final and Transitional Provisions to Title X
2Amendment of the CO
Art. 1Art. 1 ... The amendments may be consulted under AS 1971 1465. The amendments may be consulted under AS 1971 1465.Direct link
2Amendment of the CC
Art. 2Art. 2 ... The amendments may be consulted under AS 1971 1465. The amendments may be consulted under AS 1971 1465.Direct link
2Amendment of the Insurance Contracts Act
Art. 3Art. 3 ... The amendments may be consulted under AS 1971 1465. The amendments may be consulted under AS 1971 1465.Direct link
2Amendment of the Agriculture Act
Art. 4Art. 4 ... The amendments may be consulted under AS 1971 1465. The amendments may be consulted under AS 1971 1465.Direct link
2Amendment of the Employment Act
Art. 5Art. 5 ... The amendments may be consulted under AS 1971 1465. The amendments may be consulted under AS 1971 1465.Direct link
2Repeal of federal law provisions
Art. 6Art. 6 The following provisions are repealed on the commencement of this Act: 1. Article 159 and 463 of the Code of Obligations, 2. Article 130 of the Federal Act of 13 June 1911 [BS 8 281; AS 1959 858; 1964 965 No I–II…Direct link
2Amendment of legal relations governed by the old law
Art. 7Art. 7 Contracts of employment in existence when this Act comes into force (individual contracts of employment, standard employment contracts and collective employment contracts) must be amended in accordance with the p…Direct link
2Commencement of the Act
1Final Provisions to the Fourth Section of Title XIII
2A. – Transitional law
Art. 1Art. 1 1 Articles 418d paragraph 1, 418f paragraph 1, 418k paragraph 2, 418o, 418p, 418r and 418s apply immediately to agency contracts already in existence when the new law comes into force. 2 In other respects, agency…Direct link
2B. – Preferential payments on bankruptcy
Art. 2Art. 2 ... The amendments may be consulted under AS 1949 I 802. The amendments may be consulted under AS 1949 I 802.Direct link
2C. – Entry into force
Transitional provisions to Title XX1 The provisions of the new law apply to all contracts of surety entered into after this Act comes into force. 2 Contracts of surety entered into after this Act comes into force are subject to the provisions of the new…Direct link
1Final and Transitional Provisions to Titles XXIV‑XXXIII
2A. – Scope of application of the Final Title
Art. 1Art. 1 The provisions of the Final Title of the Civil CodeSR 210 also apply to this Act. SR 210Direct link
2B. – Adaptation of existing companies to the new law
3I. – In general
Art. 2Art. 2 1 Companies limited by shares, partnerships limited by shares and cooperatives that are entered in the commercial register when this Act comes into force, but which do not meet the statutory requirements, must am…Direct link
3II. – Welfare schemes
Art. 3Art. 3 Where companies limited by shares, partnerships limited by shares and cooperatives have prior to the entry into force of this Act clearly provided funds to establish and support welfare schemes for employees and…Direct link
Art. 4Art. 4 Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 2004 2617; BBl 2000 4337). Repealed by Annex No 2 of the Mergers Act of 3 Oct. 2003, with effect from 1 July 2004 (AS 200…RepealedDirect link
2C. – Balance sheet provisions
3I. – Exception for extraordinary circumstances
Art. 5Art. 5 1 The Federal Council is entitled where extraordinary economic circumstances so require to enact provisions that permit deviations from the requirements relating to balance sheets laid down in this Act. Any resol…Direct link
3II. – ...
2D. – Conditions for liability of members
Art. 7Art. 7 1 The rights of creditors existing when this Act comes into force are not adversely affected by changes to the provisions of this law relating to the conditions for liability of members. 2 Cooperatives, whose mem…Direct link
2E. – Business names
Art. 8Art. 8 1 Business names in existence when this Act comes into force that do not comply with its provisions may continue to be used unchanged for a further two years. 2 If any change is made before the expiry of this dea…Direct link
2F. – Securities
3I. – Registered securities
Art. 9Art. 9 Savings bank and deposit account books, and savings and deposit certificates issued before this Act comes into force as registered securities are subject to the provisions of Article 977 on the cancellation of de…Direct link
3II. – Shares
41. – Nominal value
Art. 10Art. 10 Shares that were issued before this Act comes into force may: 1. continue to have a nominal value of less than 100 francs; 2. be reduced in nominal value to less than 100 francs in the event of a reduction in th…Direct link
42. – Bearer shares not fully paid up
Art. 11Art. 11 1 Bearer shares and interim certificates issued before this Act comes into force are not subject to Articles 683 and 688 paragraphs 1 and 3. 2 The legal relationship between the subscriber to and acquirer of the…Direct link
3III. – Bills of exchange and cheques
Art. 12Art. 12 Bills of exchange and cheques issued before this Act comes into force are governed by the previous law in all transactions.Direct link
2G. – Community of creditors
Art. 13Art. 13 The Ordinance of 20 February 1918 [AS 34 231; 35 297; 36 623, 893] relating to the community of bond creditors and the provisions of the supplementary Federal Council Decrees [AS 51 673, 53 454, 57 1514, 58 934,…Direct link
2H. – ...
Art. 14Art. 14 Repealed by No I No c of the Annex to the IPLA of 18 Dec. 1987, with effect from 1 Jan. 1989 (AS 1988 1776; BBl 1983 I 263). Repealed by No I No c of the Annex to the IPLA of 18 Dec. 1987, with effect from 1 Jan…RepealedDirect link
2J. – Amendment of the Debt Collection and Bankruptcy Act
Art. 15Art. 15 ... The amendments may be consulted under AS 53 185. The amendments may be consulted under AS 53 185.Direct link
2K. – Relationship to the Banking Act
3I. – General reservation
Art. 16Art. 16 The provisions of the Banking Act of 8 November 1934SR 952.0 are reserved. SR 952.0Direct link
3II. – Amendment of individual provisions
Art. 17Art. 17 ... The amendments may be consulted under AS 53 185. The amendments may be consulted under AS 53 185.Direct link
2L. – Repeal of federal private law
Art. 18Art. 18 On the entry into force of this Act, the federal private law provisions that are inconsistent herewith, and in particular, the Third Division of the Code of Obligations entitled "Commercial Enterprises, Securiti…Direct link
2M. – Commencement of this Act
Art. 19Art. 19 1 This Act comes into force on 1 July 1937. 2 Excepted from the foregoing is the Section on the community of bond creditors (Art. 1157–1182), the commencement date for which will be determined by the Federal Cou…Direct link
1Final Provisions to Title XXVI
2A. – Final Title of the Civil Code
2B. – Amendment in accordance with the new law
3I. – In general
Art. 2Art. 2 1 Companies limited by shares and partnerships limited by shares that are entered in the commercial register when this Act comes into force, but which do not comply with the new statutory provisions, must amend t…Direct link
3II. – Individual provisions
41. – Participation and dividend rights certificates
Art. 3Art. 3 1 Articles 656a, 656b paragraphs 2 and 3, 656c and 656d as well as 656g apply to companies existing when this Act comes into force, including in cases where the articles of association or conditions of issue are…Direct link
42. – Refusal to accept registered shareholders
Art. 4Art. 4 Further to Article 685d paragraph 1, the company may, on the basis of a provision of the articles of association, refuse to accept persons as acquirers of registered shares listed on the stock market, provided an…Direct link
43. – Shares with preferential right to vote
Art. 5Art. 5 Companies that retain shares with preferential right to vote with a nominal value of under ten francs, in application of Article 10 of the Final and Transitional provisions of the Federal Act of 18 December 1936…Direct link
44. – Qualified majorities
Art. 6Art. 6 Where a company has adopted provisions in its articles of association governing qualified majorities for certain resolutions by simply reproducing provisions of the previous law, it may within one year of this Ac…Direct link
2C. – Amendment of federal legislation
Art. 7Art. 7 ... The amendments may be consulted under AS 1992 733. The amendments may be consulted under AS 1992 733.Direct link
2D. – Referendum
2E. – Commencement
Final Provisions to the Second Section of Title XXXIV1. and 2. ... 3. The resolutions of the community of creditors passed under the previous law remain valid under the new law. For resolutions passed after this Act comes into force, the provisions of the new law apply. H…Direct link
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Art. 746 On completion of the liquidation process, the liquidators shall apply to the commercial register office for the deletion of the business name. Division Three: Commercial Enterprises and the Cooperative / Twenty-Sixth title: The Company Limited by Shares / Section Five: Dissolution of a Comp
- SR-Nummer
- SR 220
- Document type
- Federal act
- Language
- English (en)
- Document date
- 1911-03-30
- Source
- Fedlex
- Legal area
- National law