The structural reforms introduced nearly two years ago by ex-CEO Robert Buchbauer in the Tyrolean crystal group Swarovski apparently need to be reversed. An arbitral tribunal found the reform illegal. The lawsuit was brought by a group of “opposition” relatives around Tyrolean IV president Christoph Swarovski and the Manfred family. In a statement, they called for a restart.
Responsible persons and advisers must “take responsibility for the wrong decisions of recent years” and immediately withdraw from the group’s area of responsibility, Christoph Swarovski emphasized in a statement to APA. “Regardless of the internal clarifications, everyone involved should now focus on future success,” it said.
Objective criteria instead of family connection
Swarovski’s management and supervisory board should not be filled in the future on the basis of pure family ties, but according to objective qualification criteria, according to his idea. He also mentioned the creation of a public limited company under Austrian law with a clear commitment to the branches in Tyrol.
The decision of the arbitral tribunal of 21 September shows that the accession of the Swiss Swarovski International Holding to the parent company in Wattens and further restrictions on shareholder rights were manifestly unlawful. All related unlawful decisions are therefore void or must be reversed. All shareholders would be directly involved again and the well-known family advisory board of six members – including IV president Swarovski – would continue to represent the interests of shareholders at home and abroad and manage the fortunes of the crystal group.
Entry of the Swiss holding company
The focal point of the structural reform, which was spearheaded by ex-CEO Robert Buchbauer, was the entry of Swiss-based Swarovski International Holding (SIH) into Austria’s Daniel Swarovski KG as part of a capital increase. According to the resolutions at the time, the SIH would have taken over the majority with more than 80 percent.
Shareholder rights reduced
As a result, the rights of the individual family members, ie shareholders, were significantly reduced. However, according to the report, the arbitral tribunal has now determined that this violates Swarovski’s family statute, which has been in effect for decades. A press release emphasized that the appointment of Christoph Swarovski to the advisory board in December 2020 has also been duly executed. The appointment to the board of directors of Swarovski International Holding, which manages international affairs, must be made like any other advisory board. Incidentally, the “opposition” around Christoph Swarovski and the Manfred family represents about 20 percent of the shareholders.
However, the group confirmed to the APA that “decisions had been made” that are now being investigated. The focus of the action is “continuity” and the “sustainable protection of Swarovski at all levels of companies and in all markets” was emphasized. The transformation is already taking effect and continues “led by new CEO Alexis Nasard (as of mid-June 2022, note) with the aim of adapting the business model along the value chain in a way that is scalable and focused on profitable growth”.
The arbitration court ruling was preceded by conflicts within the family clan, some of which were mediated. A group of shareholders around Markus Langes-Swarovski – who was CEO for Buchbauer until March 2020 – and Marina Giori-Lhota had called for a restructuring at the top of the group. They wanted to see someone at the helm of the company who was not a relative.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
