2 Zivilrecht, Strafrecht, Administration of Justice » 21 Civil Law » 211 Personal and Family Law

Scope of Application

1 This Ordinance regulates the supervision of private foundations within the meaning of

Articles 80 et seq. of the Civil Code, which, according to their purpose, belong to the communes.

2 It is not applicable to family foundations and ecclesiastical foundations.

Supervisory Authority

1 The supervision of foundations which, by their purpose, belong to the municipality, is incumbent upon the municipal council.

2 The jurisdiction of the Office for the Concordat on the Central Swiss BVG and Foundation Supervision (ZBSA) as the amending and conversion authority (§ 8a Lit. b EGzZGB) remains reserved.

Assumption of Supervision

1. Upon every entry of a foundation in the Commercial Register, the Registrar of Companies shall notify the competent supervisory authority of the establishment of the foundation by delivering a duplicate or a certified copy of the foundation deed and shall make a note in the Commercial Register of the supervisory authority's decision regarding the assumption of supervision over the foundation.

2. If there are doubts about the competent supervisory authority, the Commercial Register Office shall consult with the Central Office for Supervisory Authorities (ZBSA). If the doubts cannot be resolved, or if the supervisory authority deemed competent refuses to assume supervision, the Commercial Register Office shall submit the matter to the Government.

**II. Duties of the Supervisory Authority**

### Specific Duties

1 The supervisory authority is responsible for all duties assigned to it by federal law. It is competent for all measures and decisions that are not expressly reserved for another instance.

2 The supervisory authority shall particularly review

a) the organization of foundations (Art. 83 CC);

b) the use of foundation assets (Art. 84 para. 2 and 84a CC);

c) the investment of foundation assets according to the principles of sound capital investment, in particular security, adequate return, risk diversification, and liquidity;

d) the conformity of the regulations issued by theation board with the foundation deed;

e) the applications from foundations for exemption from the obligation to appoint an auditing body (Art. 83a para. 4 CC).

Exercise of Supervision

1 The supervisory authority respects the autonomy of foundations and the self-

responsibility of their bodies. It issues the necessary orders if the bodies do not act within the scope of their discretionary powers as required by their duties.

2 The supervisory authority may issue the instructions and guidelines necessary for the fulfillment of its tasks.

Amendment and Conversion of the Foundation

Upon request or *ex officio*, the supervisory authority shall apply to the ZBSA for

amendment of the organization or purpose of a foundation within the meaning of Art. 85 et seq.

of the Swiss Civil Code (ZGB), as well as for a determination that the purpose has become unattainable or for the dissolution

of the foundation (Art. 88 para. 1 ZGB).

III. Duties of the Foundation

Reporting and Submission of Accounts

1 Every foundation must, unprompted, annually submit the following legally compliant

and originally signed documents to the supervisory authority for review and

acknowledgment no later than six months after the end of the financial year

a) the annual financial statements (balance sheet and income statement);

b) the report of the audit body;

c) the report on the activities of the foundation;

d) the approval minutes of the foundation board.

2 The supervisory authority may, if necessary, request further documents and

information, and in particular inspect all documents, such as books, vouchers,

minutes, and correspondence.

Duty to inform

The foundation informs the supervisory authority about newly adopted or amended statutes and regulations, as well as the election of members of the bodies.

**IV. Administration of Justice and Fees**

Administration of Justice

Orders of the supervisory authority can be challenged by appeal in accordance with the provisions of the Administrative Justice Act.

Fees

1 The supervisory authority levies fees and reimbursements for cash disburse-

ments for the auditing of annual foundation accounts and for its other services

occasioned by the foundation, in accordance with the Schedule of Fees for Ad-

ministration and the Administration of Justice in the Canton of Schwyz of Janu-

ary 20, 1975.

2 The expenditure for the work performed and the amount of the foundation as-

sets shall be taken into account.

3 Charitable foundations and foundations serving the public interest may be ex-

empted from costs.

**VI. Final Provision**

Entry into Force and Publication

1 This Ordinance enters into force retroactively on 1 January 2006.7

2 It shall be published in the Official Gazette and incorporated into the Official

Collection of Laws.

1 GS 21-57 with amendments of 7 December 2010 (implementation JV, GS 22-129b) and of 17

December 2013 (Government Council decision adapting to new Cantonal Constitution, GS 23-97).

2 SRSZ 210.100.

3 Version of 17 December 2013.

4 SRSZ 234.110.

5 Para. 3 newly inserted on 7 December 2010.

6 SRSZ 173.111.

7 OJ 2006 228; amendments of 7 December 2010 entered into force on 1 January 2011 (OJ 2010 2719) and

of 17 December 2013 entered into force on 1 January 2014 (OJ 2013 2974).