Corporate Governance Reform in Germany: The Second Decade

34 Pages Posted: 18 Jan 2005

See all articles by Ulrich Noack

Ulrich Noack

Heinrich Heine University Duesseldorf - Faculty of Law - Center for Business & Corporate Law (CBC)

Dirk A. Zetzsche

Universite du Luxembourg - Faculty of Law, Economics and Finance; Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC)

Abstract

Notwithstanding one decade of corporate law reform during which the German legislature augmented the traditional explicit system of corporate control with market-based corporate governance devices, the German corporate governance reform law agenda is still packed. The paper provides an overview of the status of corporate law making on the verge of early Federal elections in Germany and examines the driving forces behind current reforms. It also considers governance-related securities and accounting law reforms. The authors provide brief comments on pending legislative steps and measure the impact of the reforms on the overall structure of the German corporate governance system.

The paper serves two purposes. On the one hand, it provides an insight into the dynamic development of German corporate law under the influence of European, national, and international reform agendas. On the other hand, it describes the transition from the traditional German explicit system of corporate control to a system in which the legislature assigns capital markets a greater share in controlling managers.

Keywords: corporate governance, securities regulation, accounting law, Aktiengesetz, Germany, European Union, explicit system, market system, reform, shareholder rights, current change reports, investor protection, market efficiency, Transparency Directive, director remuneration, independent directors

JEL Classification: N20, N24, M40, M10, K22, G32, G34, G30, G28

Suggested Citation

Noack, Ulrich and Zetzsche, Dirk Andreas, Corporate Governance Reform in Germany: The Second Decade. European Business Law Review, Vol. 16, No. 5, pp. 1033-64, 2004; CBC-RPS 0010. Available at SSRN: https://ssrn.com/abstract=646761 or http://dx.doi.org/10.2139/ssrn.646761

Ulrich Noack

Heinrich Heine University Duesseldorf - Faculty of Law - Center for Business & Corporate Law (CBC) ( email )

c/o Faculty of Law
Düsseldorf
Germany

HOME PAGE: http://www.jura.uni-duesseldorf.de/dozenten/noack/noack.shtml

Dirk Andreas Zetzsche (Contact Author)

Universite du Luxembourg - Faculty of Law, Economics and Finance ( email )

Luxembourg, L-1511
Luxembourg

HOME PAGE: http://wwwen.uni.lu/recherche/fdef/research_unit_in_law/equipe/dirk_andreas_zetzsche

Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC) ( email )

Universitaetsstr. 1
D-40225 Düsseldorf
Germany
+49 211 81 15084 (Phone)
+49 211 81 11427 (Fax)

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