Private Equity Minority Investments - Universität St.Gallen

Part Two: Legal Framework and Tools5 Organizational Aspects of the General Meeting InfluencingVoice5.1 Statutory FrameworkPEMIs’ influence on corporate decision making is not only a function oftheir rights to participate in and vote at general meetings, but alsodetermined by organizational structures and procedural rules, which impactPEMIs’ exercise of voice-related rights at the general meeting. Apart fromstatutory provisions, 1247 the procedural rules concerning the general meetingare specified in the articles of association and internal guidelines 1248adopted by the general meeting; 1249 the latter, however, hold little practicalimportance. 1250 In practice, procedural rules concerning the general meetingare defined by the board of directors. 1251 The rudimentary statutory rulesoffer room for flexible and situation-based structures aligned with theparties’ needs. 12525.1.1 Convening General Meetings 1253Ordinary general meetings are a yearly occasion. They take place withinsix months following the end of the fiscal year. 1254 The exact date and timeis determined by the board of directors. 1255 The general meetingconvocation must be announced at least 20 calendar days prior to the day of1247Particularly the rules on the calling of the general meeting and its agenda (CO 699-701), theinformation to be made available to shareholders (CO 696), the shareholder rights toparticipation, representation, and voting rights (CO 689-695).1248In German, Geschäftsordnung or GV-Reglement. See, in detail, HORBER, Parlamentsregeln,p. 931 et seqq. (“Reglemente, die verfahrens- und organisationsrechtliche, formelle undmaterielle Aspekte für ein bestimmtes Gremium normieren“). Among other things, suchregulations address the preparation and holding of the general meeting as well as otherorganizational aspects with an effect on content, scope, and effect of the shareholders’personal membership rights.1249For a discussion on what corporate body is competent to adopt organizational regulations onthe general meeting, see HORBER, Parlamentsregeln, p. 933 et seqq. (arguing in favor of thegeneral meeting).1250See DUBS/TRUFFER, Basler Kommentar, CO 702, N 1 et seq.; FORSTMOSER/MEIER-HAYOZ/NOBEL, § 23, N 82; VON DER CRONE/KESSLER, p. 11.1251See DUBS/TRUFFER, Basler Kommentar, CO 702, N 2.1252See HORBER, Parlamentsregeln, p. 931.1253With respect to the GmbH, the laws on stock corporations apply analogously (CO 805 V Sec.1, 2, and 5).1254CO 699 II. Such provision is mandatory, see VON BÜREN/STOFFEL/WEBER, p. 106, N 484.With respect to the GmbH, CO 805 II. See HANDSCHIN, Gesellschaftsanteile, p. 84.1255See BOHRER, § 8, N 339 et seq.; WATTER/RAMPINI, p. 9.202