Bankruptcy up in 2012
In 2012, the number of business that filed for bankruptcy in Switzerland rose. The rate of insolvency increased overall by 8.4%.
More insolvency
The past year has seen a marked rise in the number of companies going out of business in Switzerland. According to the Swiss Federal Department for Statistics, there were 12,008 open cases which is 935 more cases that in 2011 showing a 8.4% increase from that year.
In addition to the 12,008 cases we must also consider the forced company liquidations in accordance with Art 731b of the Swiss Code of Obligations (OR). Last year such liquidations dissolved 2548 companies which is an increase of 2.8% (70 cases) over the numbers of the previous year. Art. 731b OR was only introduced in 2008 and dictates the procedures for dealing with companies that have organizational deficiencies. This is the case, for example, when the functioning organs of the company are not in order, there is no board of directors or no auditing agent.
A stakeholder, or a person managing the commercial register can ask a court to order the company to take the necessary steps to get into shape. Should the company not be able to do this, the judge can appoint actors to assume the necessary responsibilities or dissolve the company and liquidate it in accordance with the legal provisions for bankruptcies.
Regional differences
The trend in bankruptcies developed in differing way among the cantons. In nine cantons the number of bankruptcies remained somewhat steady. Three cantons saw a drop while 14 saw an increase. The strongest increase was in Zurich with an increase of alomost 20%. The Geneva region also saw a strong rise with 15%. The largest drop in the bankruptcy rate was in Ticino where the number fell by 6%.
The loses caused by these bankruptcies amounted to a total of more that CHF 2.2 billion, which was a increase of 4.45% over the amount of the preceding year.
