Corporate Governance in Germany
Expert-defined terms from the Professional Certificate in German HGB for International Business course at Stanmore School of Business. Free to read, free to share, paired with a globally recognised certification pathway.
Accountability refers to the responsibility of corporate leaders to accou… #
In the context of Corporate Governance in Germany, accountability is a crucial aspect, as it ensures that those in power are answerable for their actions. Related terms include transparency, compliance, and audit committee.
Accounting Standards are the rules and regulations that govern the preparation o… #
In Germany, the relevant accounting standards are outlined in the Handelsgesetzbuch (HGB) and the International Financial Reporting Standards (IFRS). Related terms include financial reporting, disclosure requirements, and auditing standards.
Audit Committee is a committee of the supervisory board that is responsib… #
In Germany, the audit committee plays a critical role in ensuring the integrity of the company's financial reporting, and its members are typically experienced professionals with expertise in accounting and auditing. Related terms include internal control, risk management, and compliance function.
Auditor is an independent professional who conducts an independent examin… #
In Germany, auditors play a crucial role in ensuring the credibility of financial reporting, and they are typically appointed by the supervisory board. Related terms include audit report, financial statements, and accounting standards.
Board of Directors is the governing body of a company, responsible for setting t… #
In Germany, the board of directors is typically composed of experienced professionals with expertise in business and finance, and they are accountable to the supervisory board and the shareholders. Related terms include executive committee, management board, and corporate governance.
Business Judgment Rule is a legal principle that protects directors and officers… #
In Germany, the business judgment rule is an important aspect of corporate governance, as it allows directors and officers to take calculated risks and make decisions without fear of personal liability. Related terms include fiduciary duty, care and loyalty, and compliance with laws.
Capital Market is a market where companies raise capital by issuing securities,… #
In Germany, the capital market plays a crucial role in financing business activities, and companies must comply with relevant regulations, such as the Wertpapierhandelsgesetz (WpHG). Related terms include stock exchange, securities trading, and investor protection.
Code of Best Practice is a set of guidelines that outlines the principles… #
In Germany, the Code of Best Practice is known as the Deutscher Corporate Governance Kodex, and it provides guidance on issues such as board composition, executive compensation, and shareholder rights. Related terms include compliance, governance structure, and stakeholder engagement.
Compliance refers to the adherence to laws, regulations, and standards, ensuring… #
In Germany, compliance is a critical aspect of corporate governance, as companies must comply with a wide range of regulations, including the Handelsgesetzbuch (HGB) and the Wertpapierhandelsgesetz (WpHG). Related terms include risk management, internal control, and audit committee.
Corporate Governance refers to the system of rules, practices, and processes by… #
In Germany, corporate governance is based on the Handelsgesetzbuch (HGB) and the Aktiengesetz (AktG), and it encompasses issues such as board composition, executive compensation, and shareholder rights.
Corporate Social Responsibility (CSR) refers to a company's voluntary efforts to… #
In Germany, CSR is an important aspect of corporate governance, as companies are expected to contribute to the well-being of society and the environment. Related terms include sustainability, stakeholder engagement, and ethical business practices.
Disclosure refers to the process of providing information to stakeholders, such… #
In Germany, disclosure is a critical aspect of corporate governance, as companies must comply with relevant regulations, such as the Wertpapierhandelsgesetz (WpHG). Related terms include transparency, accountability, and compliance function.
Executive Compensation refers to the remuneration paid to a company's executi… #
In Germany, executive compensation is a critical aspect of corporate governance, as it must be fair, transparent, and aligned with the company's performance. Related terms include performance metrics, bonus schemes, and shareholder approval.
Financial Reporting refers to the process of preparing and presenting financial… #
In Germany, financial reporting is governed by the Handelsgesetzbuch (HGB) and the International Financial Reporting Standards (IFRS). Related terms include accounting standards, audit committee, and disclosure requirements.
Financial Statements are the documents that provide a snapshot of a company's fi… #
In Germany, financial statements are prepared in accordance with the Handelsgesetzbuch (HGB) and the International Financial Reporting Standards (IFRS). Related terms include balance sheet, income statement, and cash flow statement.
German Corporate Governance Code (DCGK) is a set of guidelines that outlines the… #
German Corporate Governance Code (DCGK) is a set of guidelines that outlines the principles and standards of good corporate governance in Germany, providing a framework for companies to follow.
Handelsgesetzbuch (HGB) is the German Commercial Code, which governs the rights… #
Related terms include commercial law, company law, and financial reporting.
Internal Control refers to the processes and procedures that a company implement… #
In Germany, internal control is a critical aspect of corporate governance, as companies must comply with relevant regulations, such as the Handelsgesetzbuch (HGB). Related terms include risk management, audit committee, and compliance function.
International Financial Reporting Standards (IFRS) are a set of accounting stand… #
In Germany, IFRS are adopted for the preparation of consolidated financial statements. Related terms include accounting standards, financial reporting, and disclosure requirements.
Investor Protection refers to the laws and regulations that protect the rights a… #
In Germany, investor protection is a critical aspect of corporate governance, as companies must comply with relevant regulations, such as the Wertpapierhandelsgesetz (WpHG). Related terms include securities law, capital market, and financial regulation.
Management Board is the governing body of a company, responsible for its strateg… #
In Germany, the management board is typically composed of experienced professionals with expertise in business and finance, and they are accountable to the supervisory board and the shareholders. Related terms include executive committee, board of directors, and corporate governance.
Risk Management refers to the processes and procedures that a company implements… #
In Germany, risk management is a critical aspect of corporate governance, as companies must comply with relevant regulations, such as the Handelsgesetzbuch (HGB). Related terms include internal control, audit committee, and compliance function.
Stakeholder refers to an individual or entity that has an interest in a company'… #
In Germany, stakeholders have important rights and interests, and companies must engage with them in a responsible and transparent manner. Related terms include corporate social responsibility, sustainability, and stakeholder engagement.
Supervisory Board is the governing body of a company, responsible for overseeing… #
In Germany, the supervisory board is typically composed of experienced professionals with expertise in business and finance, and they are accountable to the shareholders and the management board. Related terms include board of directors, executive committee, and corporate governance.
Sustainability refers to the concept of creating long #
term value for a company and its stakeholders, while minimizing its negative impact on the environment and society. In Germany, sustainability is a critical aspect of corporate governance, as companies must balance their economic, social, and environmental responsibilities. Related terms include corporate social responsibility, stakeholder engagement, and environmental management.
Transparency refers to the openness and clarity of a company's operations… #
In Germany, transparency is a critical aspect of corporate governance, as companies must comply with relevant regulations, such as the Wertpapierhandelsgesetz (WpHG). Related terms include disclosure, accountability, and compliance function.
Value Creation refers to the process of generating value for a company and its <… #
In Germany, value creation is a critical aspect of corporate governance, as companies must balance the interests of shareholders with those of other stakeholders. Related terms include shareholder value, return on investment, and financial performance.
Wertpapierhandelsgesetz (WpHG) is the German Securities Trading Act, which gover… #
Wertpapierhandelsgesetz (WpHG) is the German Securities Trading Act, which governs the trading of securities, including shares and bonds, and provides protection for investors.