Relief Letter Template for Switzerland

A Relief Letter is a formal document from a Swiss bank or financial institution that releases a board member from personal liability for certain company debts or obligations. Banks typically issue these letters when directors step down from their positions, helping protect them from future claims related to their board service.

Under Swiss corporate law, these letters play a crucial role in managing risk for board members and executives. The document specifically outlines which financial obligations are covered and the time period of protection. Many Swiss companies now consider Relief Letters a standard part of their governance practices, especially when senior leadership changes occur.

Request a Relief Letter when stepping down from a Swiss company board position or when a director in your organization resigns. This crucial document needs to be obtained from the company's main banking partners before the resignation becomes effective, ideally during the transition planning phase.

Getting Relief Letters becomes especially important during mergers, acquisitions, or major corporate restructurings. Swiss banks typically need 2-3 weeks to process these requests, so start early. For maximum protection, secure these letters from all banks where the company maintains significant business relationships or credit facilities.

• Standard Banking Relief Letters: Cover basic financial obligations and credit facilities with a single bank - most commonly used when directors leave Swiss companies
• Comprehensive Multi-Bank Letters: Broader protection covering relationships with multiple financial institutions - ideal for complex corporate structures
• Limited Scope Letters: Focus on specific transactions or time periods, often used during temporary board appointments or project-based roles
• Group Entity Letters: Extended coverage for directors serving on multiple boards within a corporate group, addressing intercompany relationships

• Board Members & Directors: Primary beneficiaries who receive protection from personal liability for company banking obligations after stepping down
• Swiss Banks: Issue the Relief Letters and determine their scope based on existing credit relationships and company history
• Corporate Legal Teams: Draft requests, review terms, and coordinate with banks to secure appropriate coverage
• Company Secretary: Manages the administrative process and maintains records of Relief Letters for corporate governance
• External Legal Counsel: Often advises on complex cases or when multiple banking relationships are involved

• Banking Relationships: List all banks where the company maintains accounts, credit facilities, or guarantees
• Director Details: Gather full name, position title, dates of service, and specific board responsibilities
• Company Information: Compile legal entity name, registration number, and addresses of all relevant subsidiaries
• Financial Exposure: Document all current banking obligations, credit lines, and outstanding guarantees
• Timeline Planning: Set clear dates for director resignation and Relief Letter requirements, allowing 2-3 weeks for bank processing
• Documentation Review: Our platform helps generate precise Relief Letters, ensuring all Swiss legal requirements are met

• Identification Details: Full names and addresses of the bank, company, and departing board member
• Scope of Release: Clear description of covered financial obligations and time period of protection
• Banking Relationships: List of specific accounts, credit facilities, and guarantees included
• Release Terms: Explicit language releasing the director from personal liability
• Effective Date: Precise timing of when the release takes effect
• Governing Law: Reference to Swiss law and jurisdiction
• Authorized Signatures: Bank representative and company signatory blocks with titles

A Relief Letter differs significantly from an Exemption Letter in both purpose and legal effect within Swiss business law. While both documents provide protection, they serve distinct functions in corporate governance.

• Scope of Protection: Relief Letters specifically address banking relationships and financial liabilities, while Exemption Letters cover broader operational or regulatory obligations
• Timing of Issue: Relief Letters are typically obtained when directors resign, whereas Exemption Letters can be issued at any time for ongoing compliance matters
• Issuing Authority: Banks issue Relief Letters, while regulatory bodies or the company itself usually provides Exemption Letters
• Legal Framework: Relief Letters focus on personal liability protection under Swiss banking law, while Exemption Letters often relate to general corporate or regulatory compliance requirements