The Problem
In Europe – in particular in the EMU-Member States – the trend towards no par value shares seems inexorable. Under Swiss law, issuing no par value shares is so far not possible. The par value serves to define the scope of shareholders' rights and is a relevant definition for tax purpose.
Business reasons to introduce Swiss no par value shares
The par value of a share is not an appropriate calculation basis for a return on equity ratio. Decision-sensitive for the investors principally are: earning capacity, the corporate strategy, the net asset value and the dividend policy - all these elements are not reflected in the par value.
A particular advantage of the no par value shares is the easier possibility to split the shares. Most of the shares listed on the Swiss Exchange (SWX) have reached a "weight" that makes them unattractive for certain investor categories. A reduction of the trading price of a share can be achieved by reducing the par value. According to the
