Federal Act of October 10, 1997, on the Confederation’s Armament Companies (AACC) - Armament Companies (BGRB)

To ensure the equipment of the military, insofar as it does not fall under the jurisdiction of the cantons, the Confederation may operate armament companies, establish private limited companies, or acquire stakes in them.

The Federal Council is authorized to establish private limited companies in the name of the Confederation, acquire stakes in them, and sell them. It regulates the modalities.

The armament companies execute the orders from the Federal Department of Defense, Civil Protection and Sports (DDPS) and from third parties, adhering to the principles of the market economy.

A holding company in the form of a public limited company manages the Confederation's shares in public limited companies.

The Federal Council sets the objectives for the company for four years.

The board of directors ensures the fulfillment of the strategic objectives. It prepares an annual report for the Federal Council on the compliance with the objectives assigned to it and provides the necessary information to monitor their achievement.

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The transfer of the majority of the Confederation's capital or voting rights to third parties is subject to the approval of the Federal Assembly.

The Confederation is represented on the board of directors of the financial holding company according to its interests.

The financial holding company is represented on the boards of directors of the armament companies in accordance with its interests.

The current armament companies of the Armament Group are transformed into private law joint-stock companies.

The assets and liabilities as well as the contractual rights and obligations of the current armament companies are transferred to these joint-stock companies in accordance with recognized valuation principles.

The Federal Council regulates the modalities.

The Confederation ensures the appropriate allocation of equity capital to current armament enterprises during their conversion into public limited companies.

The Federal Council determines the terms, timetable, and amount of the necessary recapitalization. The resulting burden on the Confederation is recorded in the capital account and amortized over several fiscal periods in the income statement.

If the coverage capital prescribed in the statutes of the armament companies increases as a result of the clearance of records carried out with the Federal Pension Fund, the Confederation shall bear the resulting coverage supplement. For this purpose, the DDPS, with the authorization of the Federal Council, submits a letter of guarantee to this effect. Any modification made to the number of insured persons and data fields is considered as record clearance.

In the event of an increase in the coverage capital as provided in para. 1, the Confederation ensures the appropriate endowment of armament companies with equity capital. The applicable accounting standards at the end of the record clearance process are determinative. The Federal Council determines the arrangements, schedule, and amount of the necessary recapitalization.

The expenditure resulting from paras. 1 and 2 for the Confederation is recorded in the capital account and amortized over several fiscal periods in the income statement.

The public law employment relations of the current armament companies' personnel within the Armament Group are replaced by private law employment relations at the time of the transformation of these companies into corporations.

After consulting with the staff associations, the Federal Council enacts transitional regulations which will remain in effect until the end of the current administrative period.

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This Act is subject to an optional referendum.

The Federal Council shall determine the date of commencement. Date of commencement: May 1, 1998