The foundations for the establishment of RUAG were laid in 1997 when the Federal Act on Federal Armaments Companies (FArmCA) was passed. This law authorizes the Swiss Confederation to operate armaments companies and, for this purpose, to found, buy or acquire a stake in joint-stock corporations in order to secure the supply of equipment to the armed forces.
The Swiss Confederation, which holds all the equity capital of RUAG, exercises its interests in RUAG through the Federal Council. As part of its "owner's strategy" (Strategic objectives of the Federal Council for RUAG Holding Ltd), the latter formulates its expectations of RUAG over a period of four years at a time.
In addition to specifying the legal form, registered office, purpose and capital of the company and of the RUAG Group, the Articles of Association of RUAG Holding Ltd also define their organizational structure, tasks and competencies in particular.