Liechtenstein Company Law
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LIECHTENSTEIN COMPANY LAW THE PREVALENT REVISED SECTIONS FROM THE PERSONEN- UND GESELLSCHAFTSRECHT ALSO RELEVANT LAWS ISSUED SINCE PUBLICATION OF THE FIRST EDITION COMPILED AND TRANSLATED BY BRYAN JEEVES OBE – I – LIECHTENSTEIN COMPANY LAW – II – Respectfully dedicated to H.S.H. The Reigning Prince Hans-Adam II of Liechtenstein and the Princely Liechtenstein Government – III – LIECHTENSTEIN COMPANY LAW THE PREVALENT REVISED SECTIONS FROM THE PERSONEN- UND GESELLSCHAFTSRECHT ALSO RELEVANT LAWS ISSUED SINCE PUBLICATION OF THE FIRST EDITION COMPILED AND TRANSLATED BY BRYAN JEEVES OBE LIECHTENSTEIN VERLAG VADUZ – IV – Die Deutsche Bibliothek – CIP-Einheitsaufnahme Liechtenstein company law: translation from the PGR update 1999 / Bryan Jeeves. – 2. Aufl. – Vaduz: Liechtenstein-Verlag, 1999 ISBN 3-85789-902-6 © 1999 Liechtenstein Verlag AG, Vaduz 2nd Edition – 1999 Alle Rechte, auch die des auszugsweisen Nachdruckes, der fotomechani- schen Wiedergabe, der Foto- und Mikrokopie vorbehalten. All rights reserved. No reproduction or transmissions by electronic or mechanical means and no photocopies permitted. Satz und Druck: Gutenberg AG, Schaan Printed in the Principality of Liechtenstein ISBN 3-85789-902-6 – V – Index Vorwort 1999 VII Preface 1999 IX Liechtenstein Company Law – Table of Contents 1 – General Provisions 17 – The Company Limited By Shares 103 – The Establishments 153 – The Foundations 163 – The Trusts in General 173 – The Trust Enterprise (The Business Trust) 195 – Business Accountancy 307 Law on Banks and Finance Companies 321 Law on the Supervision of Insurance Undertakings 347 Law on Investment Undertakings 387 Law on professional due diligence in the acceptance of assets 417 Law on the Provision, Control and Distrubution of the Prospectus to be published on the Occasion of the Public Offer of Securities 429 Glossarium – Glossary 443 Curriculum vitae Bryan Jeeves 453 – VI – – VII – Vorwort 1999 Diese Zweitausgabe wird aus zweierlei Gründen veröffentlicht. Erstens hat der Verleger – da die erste Ausgabe erfreulicherweise komplettt vergriffen ist – angesichts der diesbezüglich fehlenden englischen Literatur kontinuierlich dazu gedrängt. Zweitens hat Liechtenstein seine Gesetzgebung mit neuen Gesetzen über Versi- cherungsunternehmen, Banken und Finanzgesellschaften, Invest- mentunternehmen sowie über die beruflichen Sorgfaltspflichten, die in diese Zweitausgabe einbezogen wurden, erheblich erweitert. Seit der Erstausgabe in 1992 hat sich in Liechtenstein viel ereignet. Liechtensteins Beitritt zum EWR wird wahrscheinlich als das wichtigste Ereignis in dieser Zeitspanne in die Geschichte eingehen. Wie David Davis MP PC, der damalige Europa-Minister der bri- tischen Regierung, treffend formulierte, «vereinigt Liechtenstein das Beste von beiden Welten, die EWR-Mitgliedschaft und fort- bestehende Vorteile aus der Zollunion mit der Schweiz.» Die seitens des Regierenden Fürsten und der Regierung bei der Förderung von Liechtensteins Beitritt zum EWR gezeigte Führung und Weitsicht finden ihre Bestätigung in allem, was seitdem ge- schehen ist. Daher widme ich – wie bereits die Erstausgabe – auch dieses Buch Seiner Durchlaucht sowie der Landesregierung. Durch ihre stets nach vorn gerichtete Politik ist Liechtensteins Position im neuen Jahrtausend garantiert. Die zweite durchschlagende Änderung in Liechtenstein ist die Bil- dung einer Einparteien-Regierung erstmals seit dem Zweiten Welt- krieg. Ich kann den Mut der beteiligten politischen Parteien – in der Regierung wie auch in der Opposition – für diesen Schritt nur bewundern, der grossartig den wahren demokratischen Status von Liechtenstein bestätigt. Liechtenstein ist trotz seiner unbedeuten- den geographischen Grösse zweifellos ein völlig unabhängiges Land im wahrsten Sinne des Wortes mit einer vielerseits begehrten Infrastruktur geworden. Last but not least war diese Neuauflage nur durch die ausgezeich- nete Teamarbeit unter Leitung von Frederick Hilton und mit der Unterstützung von Christopher Salt möglich – ein Team, das unse- – VIII – re herausragende Stellung als Übersetzungsfirma in Liechtenstein gewährleistet hat, seitdem ich 1979 der erste ordnungsgemäss zuge- lassene Übersetzer wurde. Bryan Jeeves OBE, FinstD – IX – Preface 1999 This second edition has been published for two reasons. Happily the first edition has been completely sold out and the lack of English li- terature on the subject has led to continuing requests from the Pu- blisher. Secondly, Liechtenstein has greatly expanded its legislation with new laws on insurance companies, banks, finance and invest- ment entities, as well as due diligence, which are now included in this second edition. Since the first edition was published during 1992 much has happen- ed in Liechtenstein. Probably history will show Liechtenstein’s joi- ning the EEA as the most important event during this period of time. As the then European Minister of the UK Government, the Rt. Hon. David Davis MP PC quite rightly said, “Liechtenstein has the best of both worlds, EEA membership and continuing advantages from the Customs Treaty with Switzerland”. The leadership and foresight shown by the Reigning Prince and the Government in promoting Liechtenstein’s entry into the EEA have been confirmed by all that has happened since then. Therefore, I again dedicate this book to His Serene Highness, as was the case with the first edition, as well as the Government of the country. They continue to move forward assuring Liechtenstein’s position in the new millennium. The second sweeping change in Liechtenstein is the forming of a single party Government for the first time since the Second World War. I have nothing but admiration for the courage of the political parties involved, both in Government and Opposition for this step, which admirably confirms the true democratic status of Liechten- stein. Liechtenstein, despite its lack of geographic size, has unques- tionably become a fully independent country in the true sense of that word, with an infrastructure coveted by many. Last but not least, this new edition has only been made possible by a magnificent team effort led by Frederick Hilton, ably supported by Christopher Salt, a team that has ensured our prominence as a translation firm in Liechtenstein, since becoming the first duly ad- mitted translator in 1979. Bryan Jeeves OBE, FinstD – 1 – Art. Table of Contents Extracts from the Liechtenstein Law on Companies Second Part The Legal Entities (Juridical Persons) Third Title General Provisions Art. A. Legal Personality I. Preconditions 1. Registration . 106 2. Purpose and object . 107 II. Absence of the same . 108 III. Legal capacity . 109 IV. Capacity to act and for tortious liability 1. Precondition . 110 2. Activity . 111–112 V. Domicile and legal venue 1. Domicile . 113 2. Legal venue, etc. 114 VI. Protection of personality . 115 B. Formation I. Articles 1. In general . 116 2. Relationship to the law . 117 II. Entry in the Public Register 1. Notification to the Register office . 118 2. Registration of branch establishments . 119 3. Amendments and dissolution . 120 III. Number of members . 121 IV. Minimum capital resources or minimum own assets and the like . 122 C. Termination I. Reasons for dissolution 1. In general . 123 2. On grounds of unlawfulness or immorality of the purpose etc. 124 3. On grounds of important defects in the articles (voidability) . 125–128 – 2 – Art. II. Application of assets . 129 III. Liquidation 1. In general . 130 2. The state of liquidation . 131 3. Liquidators . 132–134 4. Liquidation activity . 135–138 5. Supplementary liquidation . 139 6. Alienation of the assets as a whole . 140 IV. Assertion of claims against a dissolved legal entity . 141 V. The keeping of business records and business papers . 142 VI. Take-over by the community 1. By acquisition of the shares . 143 2. Take-over of the assets and liabilities . 144, 145 VII. Continuation of a dissolved legal entity . 146 D. Membership I. Joining 1. In general . 147 2. Rescission . 148 II. Membership shares 1. In general . 149 2. Securities concerning membership . 150 3. Personal participation . 151 4. Several participants . 152 5. Trust certificates . 153, 154 III. Established and other rights . 155 IV. Liability and liability to effect further contributions 1. In general . 156 2. The contribution procedure . 157–164 V. Default in the performance in kind, exclusion of the settlement, of the right of retention, etc. 165 E. Governing bodies I. Supreme body 1. In general . 166 2. Convocation . 167, 168 3. Participation . 169 4. Authority and passing of resolutions . 170–177 5. Rescission of resolutions . 178–179 II. Administration 1. In general . 180–180a 2. Management . 181–183 3. Representation . 184–189 4. Appointment of a legal advisor . 190, 191 III. Audit authority 1. Appointment . 192 2. Position . 193,194 3. Duties . 195–197 – 3 – Art. 4. Other provisions of the articles . 198 5. Supervisory board . 199 IV. Other bodies and applicable law . 200 V. Termination and removal . 201 F. Clearing System I. In general . 202 II. Annual balance-sheet regulations 1. Date of balance . 203 2. Balance sheet principles . 204–206 3. Publication of the annual balance sheet . 207 4. Duty to disclose . 208, 209 III. Official audit 1. Precondition and appointment . 210 2. Position of the auditors . 211 3. Treatment of the auditors’ report . 212 4. Costs and compensation for loss . 213 G. Socio-political rights to shares and profit I. Working shares . 214 II. Welfare funds 1. Preconditions . 215 2. Structure and dissolution . 216 III. Other profit participation . 217 H. Responsibility I. In the case of companies with legal personality and legal entities on the same footing 1. Kind of liability . 218 2. Cases of liability . ..