Private Equity Minority Investments - Universität St.Gallen

Table of Contents4.1.1 Duty of Care ................................................................. 2624.1.1.1 Legal Concept ........................................................ 2624.1.1.2 Aspects of Due Care .............................................. 2644.1.2 Duty of Loyalty ............................................................ 2654.1.2.1 Legal Concept ........................................................ 2654.1.2.2 Minority Investor Representatives on the Board ofDirectors ................................................................ 2674.1.3 Duty of Equal Treatment ............................................. 2714.1.3.1 Legal Concept ........................................................ 2714.1.3.2 Obligors ................................................................. 2714.1.3.3 Admissibility of Differential Treatment ................ 2724.1.4 De Facto Organs .......................................................... 2734.2 Assessment of Legal Status and Further Need forProtection ........................................................................... 2754.3 Legal Structuring Options .................................................. 2764.3.1 Duty of Confidentiality ................................................ 2764.3.2 Dealing with Conflicts of Interest ................................ 2764.3.3 Non-Compete Obligations ........................................... 2805 Organizational Aspects of the Board of Directors InfluencingVoice ......................................................................................... 2815.1 Statutory Framework .......................................................... 2815.1.1 Authority ...................................................................... 2825.1.2 Convening Board Meetings ......................................... 2845.1.3 Holding Board Meetings .............................................. 2855.1.4 Board of Directors Chairman ....................................... 2865.1.4.1 Appointment and Removal .................................... 2865.1.4.2 Powers ................................................................... 2865.1.5 Management Organization ........................................... 2875.1.5.1 Requirements for Delegation ................................. 2885.1.5.2 Effects of Delegation ............................................. 2895.1.5.3 Corporate Governance Models .............................. 2905.2 Assessment of Legal Status and Further Need forProtection ........................................................................... 2935.3 Legal Structuring Options .................................................. 2935.3.1 Board Meetings ............................................................ 2945.3.1.1 Frequency .............................................................. 2945.3.1.2 Convening Board Meetings ................................... 2945.3.1.3 Holding Board Meetings ....................................... 295XIX