The German Corporate Governance Code is the main legal framework providing guidelines about company administration. The Corporate Code also describes the legal requirements for managing and supervising German corporations listed on the Stock Exchange. The final part of the Code provides recommendations for better company administration.
Another law with respect to company administration is the German Commercial Law which establishes how a company must be incorporated and the legal requirements a company may function under. German companies are required to have both a management board and a supervisory board, each with its own functions in the administration of the company.
The management board is appointed by the supervisory board for five years at most. With respect to company administration, the German management board will represent the company in business and legal relations with third parties. The management board will negotiate and sign contracts on behalf of the German company. According to the Corporate Governance Code, the management board will direct the company on a day-to-day basis under the supervision of the supervisory board.
According to the German Civil Law, a company’s management board is required to fulfill its administrative duties with the duty of care and loyalty. The management board is also required to draft an annual report on the financial state of the company based on an auditor’s assessment.
Our law firm in Germany can provide you relevant information about the provisions of the Corporate Governance Code.
Our German attorneys provide a wide range of administrative services, among which:
You may contact us for personalized administrative services in Germany. Our lawyers in Germany will also guide you through the company incorporation procedure and may draft the Articles of Association for your company.
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