It is compulsory to have three governing bodies in the case of a joint-stock company. They are:
- The General Shareholders Meeting
This is the governing body with the most powers and the highest status. They can modify and define the articles of incorporation, elect the Board of Directors and approve such documents as annual reports, balance sheets and income statements. They also decide on the profit distribution and approve the activity of the Board of Directors.
This governing body comes after the general shareholders meeting and is the managing body of the company. It is desirable that the majority of the Board are Swiss residents and the Board itself has to consist of at least one or more members who, at the same time, have to be shareholders of the corporation.
This governing body is responsible for the accuracy of the annual financial statements, which are then reported to the Board of Directors. All auditors must be certified and independent.