Germany: Corporate Governance

German corporate group law grapples with a fundamental tension: reconciling the economic interests of a corporate group as a unified entity with the legal principle that each group company operates as an independent legal entity with distinct interests.

German corporate law faces a fundamental challenge in balancing the economic interests of a corporate group with the legal principle that each subsidiary remains an independent legal entity. This article examines how the concept of 'group interest' (Konzerninteresse) operates within different corporate structures, exploring the tension between centralized group management and the protection of dependent companies, minority shareholders, and creditors.

The European Commission has proposed replacing the EU's three core procurement directives with a single, directly applicable Regulation that would fundamentally reshape how companies compete for public contracts across Member States. The reform introduces mandatory quality criteria thresholds, embeds ESG considerations as evaluation factors, and establishes new security and European-preference provisions that could restrict participation based on ownership, supply chain exposure, and strategic dependencies.

German corporate group law provides various organizational options, with group coordination agreements emerging as a flexible alternative to traditional control and profit transfer agreements. This article examines the legal classification, practical structure, and strategic advantages of these coordination mechanisms, while exploring their boundaries and future role in corporate governance.

In small family businesses and medium-sized enterprises, individuals who assume management functions without formal appointment face significant legal exposure as "de facto managing directors." This risk becomes particularly acute during corporate crises when shareholders take operational control or when financing banks deploy representatives with extensive decision-making authority. German courts have developed comprehensive case law establishing that such individuals bear the same duties and liabilities a

German companies face a complex web of legal obligations when conducting internal investigations, spanning whistleblower protection, supply chain due diligence, market abuse regulations, and anti-money laundering requirements. This briefing examines the statutory foundations, trigger thresholds, and procedural timelines that determine when and how management must initiate, escalate, and document compliance inquiries.

Das Committee of Sponsoring Organizations of the Treadway Commission (COSO) hat in Zusammenarbeit mit der National Association of Corporate Directors (NACD) am 27. Mai 2025 den Entwurf des neuen Corporate Governance Frameworks (CGF) veröffentlicht.

With entry into force of the Act on the Stabilization and Restructuring Framework for Enterprises (StaRUG) on January 1, 2021, an independent preventive restructuring framework was established to complement existing insolvency law.

Mit dem Inkrafttreten des Gesetzes über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen (StaRUG) am 1. Januar 2021 wurde ein eigenständiger präventiver Restrukturierungsrahmen geschaffen.