German governance head to rebuild trust

The aim of the German Corporate Governance Code is to make Germany’s corporate governance rules transparent for both national and international investors, thus strengthening confidence in the management of German corporations. The Code addresses all major criticisms – especially from the international community – leveled against German corporate governance, namely:

inadequate focus on shareholder interests;

the two-tier system of executive board and supervisory board;

inadequate transparency of German corporate governance;

inadequate independence of German supervisory boards;

limited independence of financial statement auditors.

German Corporate Governance Code Commission: German Corporate Governance Code http://www.corporate-governance-code.de/index-e.html

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