{"id":11171,"date":"2025-05-05T10:24:11","date_gmt":"2025-05-05T08:24:11","guid":{"rendered":"https:\/\/www.wg-avocats.ch\/?post_type=actualites&p=11171"},"modified":"2025-05-05T10:24:11","modified_gmt":"2025-05-05T08:24:11","slug":"simultaneous-registration-of-an-ordinary-share-capital-increase-and-a-capital-band-what-is-the-correct-sequence-to-follow","status":"publish","type":"actualites","link":"https:\/\/www.wg-avocats.ch\/en\/actualites\/simultaneous-registration-of-an-ordinary-share-capital-increase-and-a-capital-band-what-is-the-correct-sequence-to-follow\/","title":{"rendered":"Simultaneous Registration of an ordinary share capital increase and a Capital Band: What is the correct sequence to follow?"},"content":{"rendered":"\n

The Swiss Federal Commercial Registry Office (FCRO) published its Communication FCRO 1\/25 on 7 April 2025, providing clarification for practitioners.<\/p>\n\n\n\n


The capital band, introduced by the corporate law reform (articles 653s et seq. of the Swiss Code of Obligations) that came into force in 2023, offers corporations a new tool for flexible financing. The upper and lower limits of the capital band are determined in relation to the share capital as registered in the commercial register.<\/p>\n\n\n\n


  1.   Principle<\/strong><\/h4>\n\n\n\n


When an ordinary capital increase and an amendment to the articles of association introducing or modifying a capital band are registered simultaneously, the increased capital can serve as the basis for setting the capital band limits.<\/p>\n\n\n\n


Despite the apparent simplicity of this principle, the interaction between an ordinary capital increase and the introduction or modification of a capital band remained open to interpretation and uncertainty.<\/p>\n\n\n\n


Communication FCRO 1\/25 of 7 April 2025 now provides clarification and outlines the various possible scenarios for simultaneous registration.<\/p>\n\n\n\n


  2.   Application Cases<\/strong><\/h4>\n\n\n\n


As detailed below, particular attention must be given to the sequence of resolutions adopted by the general meeting to ensure the simultaneous registration of both elements.<\/p>\n\n\n\n


Case No. 1: The capital increase is immediately executed by the Board of Directors before the introduction of the capital band<\/strong><\/p>\n\n\n\n

    \n
  1. The general meeting approves an ordinary capital increase, which is immediately executed by the board of directors (BoD<\/strong>).<\/li>\n\n\n\n
  2. A second resolution by the general meeting (either after a break or in a new meeting) introduces the capital band, based on the increased capital.<\/li>\n\n\n\n
  3. The new shareholders must be admitted to vote on the introduction of the capital band.<\/li>\n\n\n\n
  4. Both resolutions must be registered with the competent register of commerce within six months.<\/li>\n\n\n\n
  5. This is the easiest solution.<\/li>\n<\/ol>\n\n\n\n


    Case No. 2: The capital increase is executed after the general meeting decisions on the capital increase and the capital band<\/strong><\/p>\n\n\n\n

      \n
    1. The general meeting first resolves to increase the share capital.<\/li>\n\n\n\n
    2. It then adopts a second resolution to introduce a capital band, conditional upon the capital increase being executed<\/strong>.<\/li>\n\n\n\n
    3. The BoD executes the capital increase, and both the capital increase and the capital band are then registered together within six months.<\/li>\n\n\n\n
    4. Even if the capital increase has not yet occurred at the time of the vote, the capital band limits can already be based on the future increased capital.<\/li>\n\n\n\n
    5. The new shareholders must be informed about the pre-approved introduction of the capital band.<\/li>\n\n\n\n
    6. This scenario is admissible if the sequence above is strictly followed.<\/li>\n<\/ol>\n\n\n\n


      Case No. 3: Capital increase with a maximum nominal amount is executed after the decision on the capital band<\/strong><\/p>\n\n\n\n

        \n
      1. The general meeting first decides on an ordinary capital increase with a maximum nominal amount.<\/li>\n\n\n\n
      2. It then adopts a second resolution to introduce a capital band, conditional upon the capital increase being executed<\/strong> and registered simultaneously.<\/li>\n\n\n\n
      3. At the time of the capital band resolution, the exact amount of the increased capital is not yet known.<\/li>\n\n\n\n
      4. A “formula<\/strong>” must therefore be used when introducing the authorisation clause, such as: “Share capital after the capital increase plus\/minus 20%” or “Share capital after the capital increase plus\/minus a certain number of shares.” After execution, the BoD will update the articles with the actual numbers.<\/li>\n\n\n\n
      5. The BoD has no discretionary power<\/strong>; it merely updates the figures based on the number of subscribed shares.<\/li>\n\n\n\n
      6. This option is consistent with Case No. 2 above.<\/li>\n<\/ol>\n\n\n\n


          3.   Conclusion<\/strong><\/h4>\n\n\n\n


        The FCRO\u2019s Communication provides welcome clarifications that should lead to a more harmonized practice among the cantonal registers of commerce.<\/p>\n\n\n\n


        The sequence of the resolutions adopted by the general meeting is the key to ensuring a smooth simultaneous registration of an ordinary capital increase and the introduction or modification of a capital band.<\/p>\n\n\n\n


        However, it is important to remember that a different interpretation by a court cannot be ruled out.<\/p>\n","protected":false},"author":781,"featured_media":11169,"parent":0,"template":"","format":"standard","auteur":[253],"slider":[],"droit":[79],"class_list":["post-11171","actualites","type-actualites","status-publish","format-standard","has-post-thumbnail","hentry","auteur-beatrice-viertl-bujard-en","droit-company-law"],"_links":{"self":[{"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/actualites\/11171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/actualites"}],"about":[{"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/types\/actualites"}],"author":[{"embeddable":true,"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/users\/781"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/media\/11169"}],"wp:attachment":[{"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/media?parent=11171"}],"wp:term":[{"taxonomy":"auteur","embeddable":true,"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/auteur?post=11171"},{"taxonomy":"slider","embeddable":true,"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/slider?post=11171"},{"taxonomy":"droit","embeddable":true,"href":"https:\/\/www.wg-avocats.ch\/en\/wp-json\/wp\/v2\/droit?post=11171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}