Swiss Federal Supreme Court rules that shareholders have no say on asset sales in composition proceedings
Swiss Federal Supreme Court rules that shareholders have no say on asset…
<p class="MsoBodyText">The Swiss Federal Supreme Court has issued an important decision on asset sales during a composition moratorium. In essence, the court has clarified the following:</p>
<p>- Like creditors, shareholders do not have standing to challenge a court's decision on asset sales during a composition moratorium.<br /> - If an asset sale occurs during a composition moratorium, no shareholder approval is required even if the sale relates to all or a significant part of the assets of a company.</p>
<p class="MsoBodyText">The decision removes legal uncertainty and will be helpful to structure and implement pre-pack and other asset disposal transactions under time pressure.</p>