Private Equity Minority Investments - Universität St.Gallen

Part Two: Legal Framework and Toolsexpanding the directors’ information rights. The organizational regulationsare the principal means for regulating the exchange of information betweenmanagement and the board of directors, establish the cornerstones of theboard information system, and refine the board members’ informationrights. 2225To protect themselves against unfavorable amendments of the articles ofassociation or organizational regulations, PEMIs should request suchamendments be subject to a high quorum and/or majority vote requirementto obtain veto power against any unfavorable ex post changes by thecontrolling shareholder and its board representatives, respectively. Criticalprovisions can additionally be secured by contractual agreements. 2226However, in case of board of directors’ agreements, certain limitations mustbe observed. Firstly, board members must not provide information thatcould jeopardize the company’s interest. While absolute business secretsmust not be disclosed, the board of directors has room for discretionregarding relative business secrets, which must also be protected becausethey can result in a competitive advantage for the company if they fall intothe hands of competitors. 2227 Secondly, the principle of equal treatment 2228provides another limitation to granting the PEMI additional informationrights. 22292225See BÖCKLI, Aktienrecht, § 13, N 188. If the board has delegated the management toindividual members or to third parties it must establish an appropriate reporting system in theorganizational regulations. See FN 1809. It is questionable if the organizational regulationsestablishing a board information system require a basis in the articles of association pursuantto CO 716b I. Arguing in favor DRUEY, Verwaltungsratsmitglied, p. 51, FN 6 (“Obwohl keinDelegationsfall, sollte dann aber wohl erst recht die statutarische Basis bestehen, wenn z.B.dem einzelnen Verwaltungsrat überhaupt unbeschränkter Aktenzugang gewährt werden soll.Dagegen ist das spontane Informationssystem m.E. kein notwendiger Gegenstand desOrganisationsregelments im Sinne von Art. 716b, da es ein Stück Organisation allgemeindarstellt, die, trotz der Berichterstattung, nicht als Gegenstand von Art. 716b ist.”). Incontrast, BÖCKLI, Aktienrecht, § 13, N 188 (arguing that the spontaneous information systemmust be regulated in the organizational regulations).2226See BÜHLER, Regulierung, § 11, N 1349; WYSS, Aktionärbindungsvertag, p. 514; BÜHLER,Leitlinien, p. 323; FORSTMOSER, KMU, p. 499; FORSTMOSER/MEIER-HAYOZ/NOBEL, § 39, N43 et seqq.; SCHENKER, Familiengesellschaften, p. 25.2227See FN 2030.2228See Section V.B.1.4.2229See FRICK, § 12, N 1370; FORSTMOSER, KMU, p. 499 (“Durch Aktionärbindungsverträgekönnen die Informationsrechte erweitert werden, wobei aber auch diesbezüglich dasGleichbehandlungsgebot zu wahren ist.”).354