Liechtenstein

Herbert Schonle*

I. CONSTITUTIONAL SYSTEM

1. Citizenship in the Principality of Liechtenstein (Furstentum Liechtenstein) is acquired by means of birth, legitimation, conclusion of marriage and naturalization. It is lost by means of expr~ss or imp~e~ renuncia~ion, conclusion of marriage, invalidity of marnage, and cancellation.

2. The Principality's territory is divided into two districts: Oberland Vaduz and Unterland Sche lien berg.

3· State Organs

a. The state is a cottstitutiom:l hereditary monarchy based upon parliamentary and democratic prin­ciples.

b. As Head of State, the Prince exercises public authority in conformance w id1 the Constitution. He also represents the state extemally, sanctions and approves statutes, participates in the appoint­ment of the government, appoints officials, and exercises the power of pardon.

c. The legislature (Landtag) consists of r 5 represen­tatives and is elected for a term of four years by the people. It enacts statutes, approves internation­al agreements, determines the budget, and exer­cises control over the state adrninistration. C itizens have the right to initiate statutes and can vote on these by way of referendum.

d. The government consists of the head of govern­ment, together with four government counselors (Regierungsriite) and an equal nwnber of deputy counselors. It is appointed for a term of four years and can be dismissed, on the legislature's proposal, by the Prince. The government implements stat­utes and directs the whole adrni:nistration of the state, with the exception of educational matters.

*Professor, Faculty of Law, Univenity of Geneva (Swiaerland).

e. Local authorities. - There are II autonomous c?-:nmunities. Every citizen of the state must be a Citizen of one of these communities.

4· The Judiciary

a. The High Court of State (Staatsgerichtshof) is in ~e first and last instance charged with the protec­tion of constitutional rights. It settles controver­sies over competence between the courts and the state administration and examines the constitu­ti~nality of statutes and government regulations. It Is_ also c?I?Petent in cases involving complaints agamst Inl!llsters and in disciplinary proceedings. It issues, on request of the government or of the legislature, opinions on general questions of public and administrative law and on legislation.

b . Ordinary courts. - In the whole range of civil, commercial, and criminal controversies a hier­archy of three courts is competent: The Circuit Court of the Principality (Fiirstliches Landgericht) (in civil matters as a single-judge court; in criminal matters, as a single-judge court and as a court whose bench includes laymen (Kriminalgericht, ]ugetzdgericht), the superior court (Obergericht), and the Supreme Court (Oberster Gerichtshof).

c. In atlmitristrntive proceedings, the government decides in the first instance, the administrative review tribunal (Verwaltungsbeschwerde-Instanz) (or, in tax matters, the Tax Conunission (Fiirst­liche Landessteuerkommission)) in the second in­stance, and the High Court of State in the last

instance.

d. 0/ficm of Criminal Prosecution are the public prosecutor's office and the investigating judge of the Circuit Court of the Principality.

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11. SOURCES OF LAW

Liechtenstein is among those states with codified legal systems. The most important statutes are the following; Constitution of 1921; Statute on the High Court of State ( Gesetz iiber den Staatsgerichts­hof, 1925); Statute on Nationality (Landesange­hiirigkeitsgesetz, 1960); Statute on General Admin­istration ( Gesetz iiber die allgemeine Landesver­waltungspflege, 1922/1972); Liechtenstein Civil Code consisting of the Law of Property (Sachen­recht, 1922/1967{1968) and the Statute on Persons and Business Organizations (Personen- tmd Gesell­schaftsrecht -PGR-1926/1928); Austrian Civil Code (r8I2{1846); German General Commercial Code (1865); Austrian Code of Civil Procedure (1912); Austrian Statute on the Courts (1812); Bank­ruptcy Code (Konkursordnung, 1809{1950, actually under revision); Statute on the Organization of the Courts ( Gerichtsorganisationsgesetz, 1922); Statute on the Protection ofLegal Rights (Rechts­sicherungsordnung, 1923); Austrian Criminal Code (1 8 59); Code of Criminal Procedure (Strafprozess­ordnung, 1914); Industrial Code ( Gewerbeordnung, 1915); Statute on (Labor in) Factories (Fabrik-

gesetz, 1965); Statute on Labo~ (Arbeitsgesetz,

1966); Statute on Banks and Savmgs Institutions (Gesetz uber Banken und Sparkassen, 196o); Statute on Taxes (Steuergesetz, 1961/r963/1969/r97o). Statute on Social Aid (Sozialhilfegesetz, 1965): Statute on BiJls of Exchange and on Cheque; (Wechselgesetz, Scheckgesetz, 1971); Statute on Protection of Rights and Execution (Bxekutions­ordnung, 1972). For insurance and establishment the Swiss legislation has been taken over.

The Liechtenstein statutes are published in the Official Gazette (Landesgesetzblatt -LGBl.-). The Swiss statutes declared, pursuant to the Customs Treaty of 1923, to be applicable in Liechtenstein are usually only indicated in it. Decisions of the Liechtenstein courts are contained in the Annex to the Annual Report of the Prince's Government (Rechenschaftsbericht der Fiirstlichen Regierung) (col­lected for the period from 1947 to 1966 in three special volumes: Entscheidungen der Liechtensteini­schen Gerichtshiife von 1947 his 1954, von 1955 bis 1961 atzd von 1962 bis 1966, published in 1956, 1963 and 1969).

III. HISTORICAL EVOLUTION

Austrian legislation was introduced into Liechten­stein by I?-eans ?~a Prince's Warrant (cf. supra II). The parttal revlSlons of the Austrian Civil Code ~rom 1914 to 1916 were, however, not adopted; mstead, the first parts of an indigenous Civil Code were enacted in 1922, and in 1926/1928 (supra II). !he Ger~n General Commercial Code was mtroduced m 1865 and is in large parts still in force.

Pursuant to the Customs Treaty of 1923 (21 LNTS 23 1), Liechtenstein has established an economic .and customs union with Switzerland. By a spectal agreement all the provisions of the treaty of 22 July 1972 between Switzerland and the European. Economic Community have been extended to Liechtenstein, with effect from I Jan. ~973· There are no restrictions on exports or rmports, nor on transfers of capital.

IV. PRIVATE LAW

See the Law of Property and the Statute on Per­sons (supra II). Austrian private law (especially th law of obligations, family law, and law of succe~

sion) ap li · L' h C P es m 1ec tenstein as a subsidiary source. ompare the materials on Austria (ch.. IV 4C, e, f).

V. COMMERCIAL LAW

S.ee the Statute on Persons and Business Organiza­t:J.ons (supra ll). ~e German General Commercial ~od~ (I86s) applies as a subsidiary source, especi-

y m the area of commercial transactions. The

company law sh following fo ofs very special features. The PGR (supra ~ ~ companies are treated in the (Verein) ; marketabllegal entities the associa~on

e share company (Aktten-

vm Liechtenstein L-43

gesellschafi); limited partnership on shares (Kom­manditaktiengesellschafi); Anteilsgesellschafi (corres­ponds roughly to the German bergrechtliche Gewerkschafi, but without limitation to mining purposes : no fixed capital, members have pro­portionate shares in company's fluctuating equity and can be called upon to make additional capital contributions); limited liability company (Gesell­schafi mit beschriinkter Haftung); cooperative society ( Genossenschafi); mutual insurance company (Ver­sicherungsverein auf Gegenseitigkeit); establishment (Anstalt); foundation (Stiftung); trust company (Treuhandgesellschafi, company engaged in the practice of_ accounting or in the administration of other's property); collective association (Gesamt­verband).

Personal associations without legal personality are the civil company (einfache Gesellschafi) ; partnership (Kollektivgesellschaft) ; limited partner­ship (Kommanditgesellschaft); partnership in which one partner is a silent partner (stille Gesellschafi); organization of family-held property ( Gemeinder-

schaft). Special institutions of property are homesteads

(Heimstiitten); entailed estates (Fideikommisse); sole proprietorships with limited liability (Einzel­unternehmung mit beschriinkter Hafiung); trust (Treuhiinderschafi); and trust enterprise (Treuunter­nehmen, also known as Geschiiftstreuhand, admin­istrative trust, with or without legal personality and engaged in commercial or non-commercial activities at settler's option, regulated by a 1928 Statute).

In addition, all legal fonns recognized abroad are permitted in Liechtenstein. Investment trusts are regulated in a Statute of 196o (1968). The annex to the PGR, as well as the Statute on Bills of Ex­change and on Cheques (1971), deal with the law of negotiable instuments. The law of bankruptcy (actually under revision) is set out in the Statutes of 1809 and 1950, as well as in the Statute on the Protection of Legal Rights (Rechtssicherungsord­nung) of 1923 and the Statute on Protection of Rights and Execution of 1972 (supra II) .

VI. STATE DIRECTION OF TRADE

There are no state authorities charged with the direction of trade (cf. supra III).

VII. INDUSTRIAL PROPERTY RIGHTS AND COPYRIGHT

The protection of trade names is regulated in the PGR (supra II). Other important statutes are those dealing with patents (1928), protection of trade­marks and commercial insignia (1928), industrial designs and models (1928), and copyright on works of art and literature (1928). Liechtenstein

became a party to the Berne Convention for the Protection of Literary and Artistic Works in the 1967 version of Stockholm in 1972, to the World Copyright Convention of 1952 in 1958, and to the Paris Convention on Industrial Property Rights in the 1967 version of Stockholm in 1972.

VIII. PRINCIPLES OF PROCEDURE

The settlement of civil legal controversies is regulated by the Code of Civil Procedure (1912), execution of judgments in the General Statute on the Courts (Allgemeine Gerichtsordnung, 1812), in the Statute on the Protection of Legal Rights (1923), and in the Statute on Protection of Rights and Execution (1972). The organization of the judiciary is regulated in the Statute on the Organi­zation of the Courts (1922).

With the exception of matters of non-conten­tious jurisdiction, an attempt at mediation by the Office of Mediation (Vermittleramt) is compulsory before the commencement of proceedings. The principles of orality and of immediacy, the party control over allegations and proof, and the system of free evaluation of evidence are applied. There is no requirement that a party be represented by counsel.

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Depending on the nature of the decision, one may appeal from a decision at the first instance by means of either Berufong or Rekurs, from a decision at the second instance by means of Revision or Rekurs.

An agreement to arbitrate must be in writing. The arbitrator is named by the parties; if they are

tmable to agree, he is named by the Circuit Court of the Principality. The arbttral aw~d has, as between the parties, the effect of a final JUdgment, unless grounds for its mv:alidity. are p~e~ent. Appeal to a higher arbitral tnbunalts permtssthle, if such appeal is foreseen by the agreement to arbitrate.

IX. PRIVATE INTERNATIONAL LAW

Individual provisions are to be found in the Law of Property and in the PGR (supra II). Austrian private international law is a subsidiary source, insofar as the law of obligations, family law, and inheritance law are concerned. Aside from agree-

ments with Austria and Switzerland (1970), Liechtenstein is not a party to any international agreement for the recognition and enforcement of foreign judgements.

X. SELECTIVE BIBLIOGRAPHY

I. Books and Articles

General: Beck, Das Recht des Flirstentums Liechten­stein (Zurich 1912); Marxer and Ritter, Das Recht im Fiirstentum Liechtenstein: Munck af Rosenschold (ed.), Europaisches Rechtshandbuch I (Stockholm 193 8) ; Merlin, Liechtenstein Law Digest: Martindale and Hubbel (ed.), Law Directory V (ed. 104 Summit, N .J. 1972); Lokay, Le statut juridique de Ia Principaute de Liechtenstein et ses relations avec Ia Confederation suisse (Thesis, Neuchatel 1934).

Chapter I: Raton, Le Liechtenstein- Histoire et institu­tions (ed. 2 Geneva 1967); Steger, Furst und Land tag nach liechtensteinischem Recht (1950); Lindt, Die Ver­fassung des Furstentums Liechtenstein: AoR 42 (1922) 230-240; Ritter, Die Ausgestaltung der Verwaltungs­gerichtsbarkeit im Fiirstentum Liechtenstein (Thesis, Berne 1958).

Chapter II: See supra text sub II.

Chapter IV: Ritter, Besonderheiten des liechtenstei­nischen Zivilrechts (1967); Wyler, The New Civil Law of the Principality of Liechtenstein. Law of Property and of Persons and Corporations: J.Comp.Leg. 8 (1926) III-VIII 197-214; Oehry, Liechtenstein. Ehe­schliessungsrecht: Z.£Zivilstandswesen 1961, 105-II3; idem, Die Eheschliessung nach liechtensteinischem Recht (Thesis, Fribourg 1948); Holback, Staatliches und kanonisches Eherecht im Fiirstentum Liechten­stein: Gedachtnisschrift Ludwig Marxer (Zurich 1963) II5-142.

Chapter V: Dach, Corporation Law and Taxation in Liechtenstein: A.B.A.Int. & Comp.L.Sec.Proc. 1964. 252--259; Guggi, Gesellschaftsformen im Fiirstentum Liechtenstein (1961); Marxer, Forms Most Frequently

U sed for Juridical Persons in Liechtenstein: II For. Tax.L.W.Bull. no. 9, 1-4 (r96o); Guggi, Die Aktien­gesellschaft im liechtensteinischenRecht (ed. 3, 1971); Meier, Die liechtensteinische privatrechtliche Anstalt (Zurich 1970); Biihler, Die Einzelunternehmung mit beschrankter Haftung nach liechtensteinischem PGR {Thesis, Berne 1948); Beck, Niederlassung natiirlicher undjuristischer Personen im Fi.irstentum Liechtenstein (1962); Schneider, Anstalt und Treuuntemehmen des liechtensteinischen Rechts als Unternehmensformen fur Sitz- und Holdinggesellschaften (Thesis, Gottingen 1969).

Chapter VI: Batliner, Das Geld- und Kreditwesen des Flirstentums Liechtenstein in Vergangenheit und Ge­genwart {Thesis, Neuchatel 1959); Beck, Das Enteig­nungsrecht des Furstentums Liechtenstein (Thesis, Berne 1950); Feger, Die Besteuerung der Kapitalgesell­schaften im Furstentum Liechtenstein (Fribourg 1969); idem, Kritische Betrachtung zur neueren Entwicklung des Gesellschaftssteuerrechts in Liechtenstein: SAG 43 (1_971) 269; Marxer (-Marxer and Coop), Liechtenstein: Erche (ed.), Internationale Steuern (Berlin, Frankfort 1955-1969); Grundy, Tax Heavens, A World Survey (1969); Langer, Tax Heavens of the World: Bulletin for International Fiscal Documentation .24 (1970) 423-434·

Ch~pter VII: Manual Industrial Property II [Liechten­st~m]; White and Ravenscroft (ed.), Trade Marks [L~ec?tenstein]; Bogsch and Roach, Copyright. Des­cnptton of the Treatment Given to Foreign Works and Authors (as of March 1951): 4 Unesco Bull. 143-145 (1951).

Chapter V:III: Batliner, Sicherungsgebot und Amts­befebl (die einstweilige Verfiigung) nach liechten-

X Liechtenstein lr45

steinischem Recht (Thesis, Fribourg 1957); Kornexl, Exekutionstitel nach liechtensteinischem Recht: Ge­dachtnisschrift Ludwig Marxer (Zurich 1963) 369-402.

Chapter IX: Oehry, Die Eheschliessung nach liechten­steinischem Intemationalprivatrecht (lnnsbruck 1948); Wahle, Das liechtensteinische intemationale Privat­recht: RabelsZ 2 (1928) 134-167; Reverdin, Selecting a Base of Operation in Europe. Switzerland, Liechten­stein, Benelux: Institute on Private Investments Abroad ll (196o) 31I-378; Marias, Liechtenstein- a Corporate Home Away from Home: 12 Bus.Lawyer 405-416 (1958); Schonle, Die Anerkennung liechten­steinischer juristischer Person en in Deutschland: NJW

2. Translations of Legislative Texts

Chapter I: Constitution of Liechtenstein of 5 Oct. 1921 as amended up to 1965: Peaslee, Constitutions ill 531-55o; Act of14 Nov. 1933 on the Acquisition and Loss of Nationality: Nationality Laws 294-298.

Chapter VII: Law Concerning Copyright in Literary and Artistic Works of 26 Oct. 1928 as amended up to 8 Aug. 1959: Copyright Laws [Liechtenstein) Item I.

(Completed in June 1972)