Document background
The Shareholder Rights Agreement is a fundamental document used in Swiss corporate practice to establish a clear framework for shareholder relationships and corporate governance. It becomes particularly important when companies have multiple shareholders, are seeking investment, or are planning for future growth scenarios. This agreement, governed by Swiss law and particularly the Swiss Code of Obligations, typically addresses crucial aspects such as share transfer restrictions, voting arrangements, board composition, and minority shareholder protections. The document is essential for both private and public companies, though its specific provisions may vary depending on the company's size, structure, and shareholder composition. A well-drafted Shareholder Rights Agreement helps prevent potential conflicts, provides clarity on decision-making processes, and establishes clear mechanisms for handling various corporate scenarios, from routine operations to major corporate changes.
