This article discusses the rules for provisions and contingent liabilities as proposed in the draft of the Swiss Code of Obligations. The article explains the application of the new accounting and corporations law rules and compares the new rules of the Swiss Code of Obligations to the...

The new proposed Swiss Code of Obligations introduces for the first time rules for the recognition of employee stock options plans. Aim of the new provisions is to improve transparency of for the financial statements of Swiss companies. However, the newly proposed rules leave many loopholes...

Until recently, it was unclear whether goodwill or intangible assets are a possible consideration for newly issued stocks according to Swiss Joint Stock Corporations Law. This is especially problematic because Swiss Corporations law has a nominal capital approach under which it is generally...

In December 2005, the first draft of the new Stock Corporation and Financial Reporting Code has been published. Amongst other things, the definition of the term asset is introduced to the new Swiss Code of Obligations. The legal certainty concerning indebtness (i.e., impaired equity capital in...

This article discusses a recent decision of the Swiss Federal Supreme Court. The judges in this case are mainly adjudicating the illicit collective action of several companies and individuals who were trying to circumvent financial market laws with an international business model. The Swiss...

The demarcation between debt and equity is a long-standing core constituent of company and taxation law the world over. However, its sustainability for national and international taxation regimes is increasingly the subject of doubt. Domestic and international proposals for reform are directed...

German Abstract: Mit der Inkraftsetzung des Fusionsgesetzes wurde eine neue Sanierungsvariante eingeführt: die Sanierungsfusion (Art. 6 FusG). Diese Sanierungsvariante wird mit Hilfe von Art. 725 OR ausgelegt, in welchem der Kapitalverlust und die Überschuldung definiert sind. Die...

English Abstract: This essay provides a survey on important empirical evidence on the "Chapter 11" corporate reorganization procedure of the United States of America, and applies the relevant economic findings to the new Swiss corporate reorganization procedure. Accordingly, the Swiss corporate...

German Abstract: Das neue Recht hat keine konkrete Regel zur Rechnungslegung von Forschungs- und Entwicklungskosten (F&E-Kosten). Zwar enthält Art. 959 Abs. 2 OR die allgemeinen Bilanzansatzkriterien, doch für ein komplexes Thema wie F&E liefert diese Bestimmung kaum Anhaltspunkte....

The debate about the compensation of executives and directors is a discussion about incentives and agency costs. This article analyzes basic tools to reduce agency costs and also assesses the ongoing debate about the future regulation of the compensation of executives and directors. It draws...