A shareholder who fails to pay in the issue amount for their share in good time is obliged to pay default interest.
Further, the board1of directors has the power to declare that the defaulting shareholder has forfeited their rights in respect of the share subscription and any part payments already made and that their shares are forfeited and to issue new ones in their place. Where the forfeited shares have already been issued and cannot be physically obtained, the declaration of forfeiture is published in the Swiss Official Gazette of Commerce and in the form provided for in the articles of association.
The articles of association may also provide that a shareholder in default also be required to pay a contractual penalty.
Footnotes
Term in accordance with No II 3 of the FA of 4 Oct. 1991, in force since 1 July 1992 (AS 1992 733;BBl 1983 II 745). This amendment has been taken into account throughout the Code. ↩
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