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Startups often forget to incorporate appropriate transfer restrictions in their shareholder agreements. In our conversation with Juan Fernando Baron of Rele.ai, we are exploring the various forms of transfer restrictions, such as the right of first refusal, drag-along and tag-along rights, purchase options with triggering events as well as permitted transfers, and are discussing the benefits of incorporating them into a startup's shareholder agreement early on.

Wirecard has proven once again that stellar growth and stunning revenues do not always mean that a company is well-founded. Although the board of directors has responsibilities towards the shareholders and the latter have certain information rights, organisational failure and mismanagement often remain unnoticed until it's too late. Additional corporate governance laying down the fundamentals on management and organisation is therefore vital for long-term success, to ensure that the checks and balances among the stakeholders involved (shareholders, founders, and employees) are appropriate.

On the 16 July 2020, the Court of Justice of the European Union ("CJEU") finally rendered its long-awaited judgement in the Case C-311/18, Data Protection Commissioner v Facebook Ireland & Schrems ("Schrems II") on the validity of Standard Contractual Clauses ("SCC") as a transfer mechanism for transferring personal data from the EU/ EEA to third countries under the General Data Protection Regulation ("GDPR"). In its decision, the CJEU considers that the Commission Decision 2010/87 on standard contractual clauses is valid. However, in its decision, the CJEU also ruled on the adequacy provided by the EU-US Data Protection Shield and invalidated the protection afforded by this Decision.

Swiss data protection law also uses the protection of the SCCs and the Privacy Shield as mechanisms for data transfers. Both in Switzerland and the EU many businesses rely heavily on the SCCs and the Privacy Shield for their data transfers to countries outside of the EU/EEA or Switzerland. As a result of the CJEU's judgement, businesses will need to take immediate action or be in breach of data protection laws. Find out in our blog what this landmark decision from the CJEU means for your business.

If you are a start-up or established business providing online intermediation services or offering a search engine for business and corporate website users in the European Union, then you might have to update your terms and conditions because of a new EU Regulation. The Regulation on promoting fairness and transparency for business users of online intermediation services, which enters into effect on 12 July 2020, applies to businesses both in and outside the EU. The Regulation sets out several obligations for service providers, including requirements with regard to the terms and conditions of the service provider.

Find out in our blog whether the Regulation applies to you and how you will have to change your terms and conditions.

New requirement for fund managers and other financial services providers: If you are a financial services provider under the Swiss Financial Services Act, even if you are only active on a cross-border basis, you must join an ombudsman office prior to 24 December 2020. This requirement also applies if you are marketing funds to Swiss investors on a cross-border basis.

Due to the declining number of new infections, the Federal Council has largely relaxed its measures. On 22 June 2020, the Federal Council repealed the COVID-19 Ordinance 2 which contained, among other things, obligations of employers with regards to the coronavirus.