Entrepreneurship

According to Art. 697 of the Swiss Code of Obligations, shareholders have an inalienable right to information about the course of business and audit results, however, this is limited in order to protect trade secrets. This right helps them make informed decisions, but can be restricted if there is a risk to sensitive company data.

The general assembly, as the highest body of a joint-stock company, elects the board of directors and decides on the annual accounts. It must be convened by the board of directors at least once a year.

The income statement shows the financial position of a company and can be presented using the cost of sales method, which only considers sold quantities, or the total cost method. In Switzerland, companies can choose between these methods, where the cost of sales method requires detailed product costs and is more elaborate.

Succession planning for SMEs in Switzerland should begin 7-10 years in advance to clarify tax and family law issues. When selling a business, the right valuation and preparation are crucial for success.

Costs of debt are directly based on lender interest rates, whereas equity costs require a calculation using the CAPM, which utilizes the risk-free interest rate, market risk premium, and company-specific beta.

Dividends have been tax-favorable since 2008 and are not subject to AHV contributions, however, a too low salary payout can trigger corrections. A salary reduction reduces social benefits and increases the asset tax value of the company.

The judicial estate procedure in Switzerland helps debtors regulate their liabilities under the supervision of a judge. It implements an estate contract that must be accepted by a majority of the creditors.

In the dissolution of a corporation, it usually enters into liquidation, whereupon its assets are liquidated and the company is deleted from the commercial register. An early distribution of assets requires an audit report by an auditing expert.

Company value is determined by multiplying a reference value (e.g., EBIT) by an industry-dependent multiplier. Ideal for SMEs, as no complex forecasts are necessary.