Compliance & Corporate Governance
Compliance and corporate governance issues have achieved an ever more prominent role in internal company revision, not only of public limited companies but of all medium sized companies in general.
Companies following sound compliance and corporate governance rules are more competitive and achieve a higher company value. Over 80% of investors are inclined to pay a 20% premium on companies which follow these rules. Accordingly, the credit rating of the companies is assessed more positively.
Badly or insufficiently applied compliance and corporate governance rules on the other hand bear high or even existential risks for company and management. Company boards and directors are personally liable if decisions are taken on the basis of insufficient information. They carry the burden of proof that no conduct contrary to their duty has taken place. Should no proper information management system be installed in the company, D&O (directors and officers) insurers could refuse payment of the insurance policy claims in case of breach of their directorial obligation.
In 2002 Deutsche Bank had to pay a fine of € 1,6 Million to the American SEC because of failure to properly store company Emails. Especially the area of electronic communication via Email within businesses and companies has seen a substantial increase in its legal regulatory framework and rules which can end up in liability traps. The following might serve as an example: should a company consent to private Email exchange by their employees at work it assumes the liability of a telecommunications provider and has to follow the corresponding laws and regulations.
The area of corporate governance and compliance has reached increasing prominence in our recent business activities. Our legal teams in their respective locations pool their practical and academic experience and knowledge to duly cover this essential topic in a qualified manner.
German domestic regulations and jurisprudence are being covered comprehensively by our team as well as European Union and international regulations (Basel II and the Sarbanes Oxley Act 2002.
Our team offers legal expertise on the organisation and the day to day business of your company under corporate governance and compliance considerations and works out a streamlined and optimised concept for your company, thereby avoiding preventable liability risks.
In case of damage claims based on infringements of compliance or corporate governance laws and rules we can help in effectively pursuing your claim as plaintiff or build an effective defense in case of claims filed against your company.