Decision on the Admissibility of a Legal Entity as an Extrajudicial Bankruptcy Administrator

Facts

In the bankruptcy of Willi Oettli, the first creditors' meeting on 20 June 1972 elected Neutra Treuhand AG as the extrajudicial bankruptcy administrator. The debtor later applied to the District Court of Horgen to revoke the resolution and dismiss Neutra Treuhand AG from its function, as a legal entity could not be elected as an extrajudicial bankruptcy administrator. The District Court and the High Court of the Canton of Zurich dismissed the application. The debtor then filed a recourse with the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed the recourse. It stated that the wording of Art. 237(2) DEBA was not unambiguous and that legal entities could indeed be elected as extrajudicial bankruptcy administrators. The previous Federal Supreme Court decisions rejecting this were no longer convincing. Legal entities, particularly fiduciary companies, have an established organization and experts, which can be advantageous especially in…