New rules for the inheritance of SME businesses are off the table
Published: Tuesday, Mar 12th 2024, 10:40
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The Council of States wants nothing to do with new rules for the inheritance of SME businesses. For the second time, it has rejected corresponding amendments to the Civil Code to facilitate company succession under inheritance law. The bill is therefore dead.
On Tuesday, the small chamber voted 25 to 17 with one abstention in favor of the preliminary deliberations of the Legal Affairs Committee (RK-S) and did not approve the bill. It thus confirmed its decision from last summer. Although the National Council subsequently supported the proposal, it is now off the table.
The aim of this bill was to enable the integral allocation of a company to an heir if the estate had not been settled prior to death. The reform was intended to contribute to greater stability, particularly for Swiss SMEs, and secure jobs.
Waiting for the last reform to take effect
Commission spokesperson Daniel Fässler (center/AI) pointed out on behalf of a majority that there was no need for regulation. In the vast majority of cases, the inheritance of a company takes place by mutual agreement.
In addition, the majority was of the opinion that it is the responsibility of the entrepreneur to arrange their own succession. They doubted that the proposal would actually create legal certainty in disputed cases. Finally, the proposed regulation would lead to unequal treatment between heirs.
Fässler referred to the revision of inheritance law that came into force on January 1, 2023. This will allow testators to freely dispose of a larger part of their estate. This will also lead to greater flexibility in company succession under inheritance law, making it easier to transfer a company to a successor. "We first need to see what impact this revision will have."
3400 potential cases
A minority, on the other hand, argued unsuccessfully that it was not in the interests of the economy if a company had to be liquidated because the company succession had not been regulated in the case of several potential heirs. The proposed regulation was merely a safety net in such cases.
In addition, the minority was of the opinion that the current legislation places too much emphasis on the protection of minorities. For example, a single heir could force the liquidation of a company at the time of inheritance, which would lead to a loss of knowledge and continuity and endanger jobs.
Every year, up to 16,000 companies are faced with the question of succession planning. According to the Federal Council, an estimated 3,400 are potentially affected by financing problems due to inheritance regulations.
No detailed discussion in plenary session
The minority also put forward political reasons for accepting the bill. The bill was based on a parliamentary decision and the consultation process had produced predominantly positive reactions. "It is not fair to block the discussion before the detailed consultation," said Justice Minister Beat Jans.
Council of States member Beat Rieder (center/VS) countered that the Council of States committee had indeed looked at the details in the run-up to the debate. Afterwards, however, it had come to the conclusion that it had not found any satisfactory solutions.
"Certain inheritance cases end up in court, and this cannot be changed with the bill," said Rieder. In the end, the majority of the center and FDP groups in the Council of States as well as the SVP members of the Council of States said no to the bill.
©Keystone/SDA
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