Private Equity Minority Investments - Universität St.Gallen

Part Two: Legal Framework and Toolsdelegated upwards to the general meeting, downwards to any subordinateauthority, 1471 or withdrawn from the board by the articles of association orby a resolution of the general meeting. 1472 In a GmbH, the non-delegableand inalienable powers of the managing officers 1473 largely correspond tothose of the board of directors, with one exception: top management isappointed by the meeting of members if the articles of association soprovide. 1474According to the Swiss Code of Obligations the non-delegable andinalienable powers of the board of directors include: 1475Ultimate management responsibility. 1476 The board of directors has theultimate corporate management responsibility. It formulates strategicgoals 1477 and corporate policy, thereby establishing the regulatory frame-PELLANDA, Basler Kommentar, CO 716a, N 2 (describing CO 716a as an exhaustivecatalogue of the board’s powers; the duties just mentioned may be delegated to boardcommittees).1471See BÖCKLI, Aktienrecht, §13, N 281; ROTH PELLANDA, p. 220, N 449; KRNETA, CO 716, N1159; DRUEY/GLANZMANN, § 13, N 14; WATTER/ROTH PELLANDA, Basler Kommentar, CO716a, N 1 (with certain exceptions listed in CO 716, N 7). The board of directors may,however, assign the preparation and implementation of its resolutions as well as thesupervision of business transactions to board committees or individual board membersprovided that adequate reporting to its members is ensured (CO 716a II).1472If the shareholders do not approve of the decisions and behavior of the board of directors orsingular members thereof any longer they may remove respective directors (CO 705 I), denythe discharge (CO 698 II Sec. 5) and amend the corporate purpose (CO 698 II Sec. 1 i.c.w.701 Sec. 1), see ROTH PELLANDA, p. 220 et seq., N 450. Equally in a GmbH, where it is alsopossible to make certain decisions subject to approval by the meeting of members, seeWATTER/ROTH PELLANDA, Basler Kommentar, CO 810, N 5.1473CO 810 II, 804 III.1474CO 810 II.1475CO 716a I. See, in detail on such core powers, MÜLLER/LIPP/PLÜSS, p. 137 et seqq.;HOMBURGER, Zürcher Kommentar, CO 716a, N 530 et seqq. With respect to the exclusivepowers of the managing officers in a GmbH, CO 810 II, see WATTER/ROTH PELLANDA,Basler Kommentar, CO 810, N 5.1476CO 716a I Sec. 1. In German, Oberleitung. For the term in detail, see BÖCKLI, Aktienrecht, §13, N 303 et seqq.; WATTER/ROTH PELLANDA, Basler Kommentar, CO 716a, N 4; MÜLLER/LIPP/PLÜSS, p. 142; WATTER, Verwaltungsratsausschüsse, p. 185 et seq. With respect to theGmbH, CO 810 II Sec. 1. On the ultimate management responsibility in a GmbH, seeSIFFERT/FISCHER/PETRIN, CO 810, N 4; NUSSBAUM/SANWALD/SCHEIDEGGER, CO 810, N 7;in detail, NATER, p. 149 et seq. The rules governing the GmbH focus less on theimplementation of strategy via directives to executive managers, and more on the managingofficers scrutinizing their own direction, see WATTER/ROTH PELLANDA, Basler Kommentar,CO 810, N 7.1477See ROTH PELLANDA, p. 225, N 463. In detail on corporate strategy, KRNETA, CO 716, N1177; realistically also MEIER-HAYOZ/FORSTMOSER, § 16, N 415 (“Der nebenamtlich tätigeVerwaltungsrat einer mittleren oder grossen Gesellschaft wird niemals in der Lage sein, dieStrategie von Grund auf selbst zu entwickeln. Er kann und muss sich darauf beschränken, dieVorschläge der Geschäftsleitung zu analysieren, zu modifizieren, zu ergänzen, schliesslich zugenehmigen oder nötigenfalls zur Überarbeitung zurückzuweisen.“).234