Corporate Governance

The term "corporate governance" describes the regulatory framework and methods and tools for responsible management and supervision of a company. The important elements and objectives of corporate governance are, inter alia, efficient cooperation between the governing bodies, open and transparent corporate communications and also respect for the interests of stakeholders.

Corporate governance does not therefore follow internationally uniform guidelines but is based on a few common, internationally accepted principles and a country-specific understanding of responsible corporate governance.
 
In Germany, the main legal provisions and, beyond this, recommendations for good and responsible governance of listed companies have been formulated since 2002 in the German Corporate Governance Code. The code has a statutory basis through the declaration in accordance with Section 161 AktG - German Stock Corporation Act - (inserted in the Transparency and Disclosure Act, which entered into force on 26.07.2002). According to the governmental commission of the German Corporate Governance Code, the German Corporate Governance Code should ensure that the rules for the management and monitoring for national and international investors are made transparent in order to restore confidence in the corporate governance of German companies.

Corporate governance is very complex and includes legally mandatory rules as well as voluntary measures: the observance of laws and regulations (Corporate Compliance), the implementation of accepted standards and recommendations as well as the development and implementation of their own corporate guidelines. Another aspect of corporate governance is the development and implementation of management and supervisory structures.

Because of its broad definition, good corporate governance can only be achieved by using an internal control system.