Federal Council enables electronic general meeting

On March 16, 2020, the Federal Council issued COVID-19 Ordinance 2 and created the possibility in Art. 6a that stock corporations can now hold their general meetings in written or electronic form (via e-voting) and thus without the presence of shareholders. This decision by the Federal Council is in any case historic and to be welcomed. Until now, there has been no explicit regulation allowing general meetings to be held electronically. In some cases, the opinion was held that Swiss company law offered scope for this. Due to the approaching AGM season and the prevailing corona crisis, the question has arisen among public limited companies as to whether and how they can hold their upcoming general meetings, especially since a ban on events has been declared. With the new measures issued by the Federal Council, it was no longer just larger public limited companies that faced a challenge. The current situation forced the Federal Council to react quickly. It remains to be seen how the new regulations will be implemented in practice.

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