Legal Landscape Digest — May 28, 2026

Corporate Governance and Auditing

The framework for corporate oversight remains rigorous, particularly for public companies. Such entities are required to have their annual and consolidated accounts audited by a state-supervised auditing firm. Other companies subject to ordinary audits must appoint a licensed auditing expert. Mandatory audits are triggered for public companies—defined as those with listed securities, outstanding bonds, or those contributing significantly to a public company's consolidated accounts—as well as companies exceeding two of three specific size criteria (20 million CHF balance sheet total, 40 million CHF turnover, or 250 full-time employees) for two consecutive years. Shareholders holding at least 10 percent of the share capital may also demand an ordinary audit.

Within the leadership of an Aktiengesellschaft, the Board of Directors holds several non-transferable and irrevocable duties, including the overall management of the company, organization of accounting and financial planning, and the appointment of management. For companies listed on a stock exchange, the Board must also produce a remuneration report, which must detail the participation rights and options of board members, executive management, and advisory board members, including their close associates. Similarly, managers of a Limited Liability Company (GmbH) are responsible for the general leadership, organization, and the preparation of the annual report and general meetings.

Regarding corporate administration, general meetings of an Aktiengesellschaft can be held without formal summons if all shareholders are present or if decisions are made in writing or electronically, provided no shareholder requests an oral discussion. Normally, the Board must notify shareholders of a meeting at least 20 days in advance. In the case of cooperatives, any resolution to change statutes must be publicly notarized and entered into the commercial register.

Taxation and Fiscal Obligations

Taxpayers are mandated to cooperate fully with authorities to ensure correct assessments, which includes providing business books and vouchers upon request. For those with self-employment income or legal entities, signed annual accounts or detailed income and expenditure statements must accompany the tax return.

Direct federal tax for associations, foundations, and other legal entities is set at 4.25 percent of net profit, though profits under 5,000 francs remain untaxed. Certain non-citizens who are not employed in Switzerland may opt for expenditure-based taxation instead of income tax, provided they meet specific residency and citizenship criteria; this tax is based on living expenses with a minimum threshold, currently 421,700 francs.

In the realm of tax disputes and enforcement, objections to assessment orders must be filed in writing within 30 days. Regarding tax crimes, the statute of limitations varies: three years for breaches of procedural duties, six years for attempted tax evasion, and ten years for completed tax evasion. Additionally, the Federal Tax Administration (ESTV) is responsible for verifying the correct registration and payment of VAT. Import tax debts arise simultaneously with customs debts and generally allow a 60-day payment window. For those seeking a refund of withholding tax, a written application is required, typically after the calendar year in which the taxable benefit became due.

Civil, Family, and Inheritance Law

In a significant legal distinction, animals are explicitly categorized as not being things, although the rules applicable to things apply to them in the absence of specific regulations. On the matter of personal rights, any individual whose personality is unlawfully violated may seek judicial protection.

Family law continues to define various property regimes. A general community of property merges the assets and income of spouses into a shared pool that cannot be disposed of individually. Conversely, a legal separation of property occurs by law upon the separation of a couple. In cases of property connection, any surplus is distributed with one-third to the wife or her descendants and two-thirds to the husband or his heirs, unless a marriage contract specifies otherwise.

In the area of inheritance, an individual is deemed unworthy to inherit if they intentionally and unlawfully caused the death of the deceased, caused their permanent incapacity, or used fraud or threats to prevent the creation or revocation of a will. Furthermore, if a paternity claim is successful, the court generally decrees joint parental custody unless the child's welfare dictates otherwise.

Labor and Housing Regulations

Employment law provides protection against abusive termination, granting the aggrieved party compensation determined by a judge, which may reach up to six months' salary. In certain specific cases of abusive termination, this amount is capped at two months' salary. Regarding liability, a debtor is generally liable for any fault, though this may be judged more leniently if the business provides no benefit to the debtor.

In the housing sector, tenants may challenge abusive rents and request a reduction if the landlord has achieved an excessive return due to a significant decrease in costs. Such requests must be made in writing, and if the landlord does not comply, the tenant may approach the conciliation authority. It is noted that existing lease agreements remain in effect during conciliation or court proceedings. These rental protections also apply analogously to the lease of business and residential premises under "Pacht" laws.

Social Security and Insurance

The organization of social security involves a structured affiliation to compensation funds. Employers and self-employed individuals typically belong to a professional association's fund or, if no such affiliation exists, to the cantonal fund. These funds are tasked with calculating and paying out pensions, daily allowances, and care costs. Under the Invalidity Insurance (IVG), if the insurance covers the full cost of board and lodging, a deduction is made from the daily allowance, with the amount determined by the Federal Council based on the person's support obligations.

Financial Instruments and Obligations

Regulations regarding bills of exchange dictate that protests must be raised by an authorized official or office. For checks issued in a foreign currency, payment can be made in the local currency based on the exchange rate of the day of presentation, unless the issuer has specified a particular currency.

Finally, in general obligations, a debtor making a payment is entitled to a receipt and, upon full settlement, the return or cancellation of the debt note. In cases of joint and several liability, a creditor may choose to demand the whole or a part of the debt from any of the debtors, who remain collectively liable until the full amount is paid.