Federal Act on the Amendment of the Swiss Civil Code (OR)

Art. 860OR from 2023

Art. 860 3. Duty to form and accumulate a reserve fund

¹ Where the net profit is used for a purpose other than to build up the cooperative’s assets, each year one twentieth of it must be allocated to a reserve fund. Such allocations must be made for at least 20 years; where share certificates exist, they must in any event be made until the reserve fund is equal to one-fifth of the cooperative’s capital.

² The articles of association may stipulate that the reserve fund must be accumulated more rapidly.

³ To the extent that the reserve fund does not exceed one-half of the cooperative’s other assets or, where share certificates exist, one-half of the cooperative’s capital, it may be used only to cover losses or for measures designed to sustain the cooperative’s pursuit of its objects in difficult times.

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