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Business Ownership Contract

Business Ownership Contract Template for Switzerland

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Key Requirements PROMPT example:

Business Ownership Contract

"I need a Business Ownership Contract under Swiss law for a new tech startup with three co-founders, where we'll have equal ownership shares but different voting rights based on our roles, to be effective from March 1, 2025."

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Document background
The Business Ownership Contract serves as a foundational document for establishing and maintaining clear ownership structures in Swiss business entities. It is essential when founding a new business, restructuring ownership, admitting new shareholders, or formalizing existing ownership arrangements. The document must comply with Swiss legal requirements, particularly the Swiss Code of Obligations and relevant cantonal regulations. It typically includes detailed provisions on ownership rights, management authority, profit distribution, and transfer restrictions. This contract is crucial for protecting owners' interests, preventing disputes, and ensuring smooth business operations. It requires careful consideration of Swiss corporate law, tax implications, and commercial registry requirements, making it a vital tool for business governance and succession planning.
Suggested Sections

1. Parties: Identification and details of all parties involved in the business ownership agreement

2. Background: Context of the agreement and history of the business arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Business Structure and Ownership: Legal form of the business and ownership distribution

5. Capital Contributions: Details of initial and any subsequent capital contributions

6. Management and Control: Governance structure and decision-making processes

7. Rights and Obligations: Specific rights and duties of business owners

8. Profit and Loss Distribution: Method and timing of profit sharing and loss allocation

9. Transfer of Ownership: Rules and procedures for transferring ownership interests

10. Valuation: Methods for valuing the business and ownership interests

11. Dispute Resolution: Procedures for resolving conflicts between owners

12. Termination: Conditions and procedures for terminating the agreement

13. Governing Law: Specification of Swiss law application and jurisdiction

14. General Provisions: Standard contractual provisions including notices, amendments, and severability

Optional Sections

1. Non-Competition: Restrictions on owners engaging in competing businesses, used when specific competitive concerns exist

2. Intellectual Property Rights: Ownership and usage of IP, included when the business has significant IP assets

3. Death or Incapacity: Procedures for handling ownership upon death or incapacity of an owner, important for family businesses or sole proprietorships

4. Tag-Along Rights: Rights of minority owners to join in sale of majority interest, relevant for multiple-owner structures

5. Drag-Along Rights: Rights of majority owners to force minority owners to join in sale, useful in potential exit scenarios

6. Emergency Succession: Procedures for immediate business continuity in crisis situations

7. International Operations: Specific provisions for businesses operating across borders

Suggested Schedules

1. Schedule A - Initial Capital Contributions: Detailed breakdown of each owner's initial capital contributions

2. Schedule B - Ownership Structure: Current ownership percentages and classes of ownership

3. Schedule C - Business Assets: Inventory of major business assets and their ownership status

4. Schedule D - Voting Rights: Detailed voting rights and procedures for different classes of ownership

5. Schedule E - Valuation Methodology: Specific formulas and procedures for business valuation

6. Appendix 1 - Business Plan: Current business plan and strategic objectives

7. Appendix 2 - Financial Statements: Recent financial statements and projections

8. Appendix 3 - Shareholders' Resolution: Copy of shareholders' resolution approving the ownership structure

9. Appendix 4 - Commercial Registry Extract: Current extract from the Swiss Commercial Registry

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions







































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Relevant Industries

Professional Services

Manufacturing

Retail

Technology

Financial Services

Healthcare

Real Estate

Construction

Hospitality

Agriculture

Energy

Transportation

Media and Entertainment

Education

Consumer Goods

Relevant Teams

Legal

Corporate Affairs

Finance

Executive Leadership

Compliance

Risk Management

Corporate Governance

Shareholder Relations

Business Development

Investment

Relevant Roles

Chief Executive Officer

Business Owner

Managing Director

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Business Development Director

Financial Controller

Compliance Officer

Risk Manager

Board Member

Shareholder Relations Manager

Corporate Governance Officer

Investment Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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