Good corporate governance and effective yet manageable compliance systems are key prerequisites for a successful business operation. In Germany, companies are increasingly judged in public by the quality of their respective systems.

HERMES&GIEBELER LEGALS SOLUTIONS advises clients in setting up new or optimizing existing corporate governance and compliance structures.

Corporate governance deals with a company’s constitution, i.e., the fundamental rules of collaboration and interaction among management, directors and shareholders, as well as the workforce and its representatives. Good corporate governance is crucial for a successful business since it sets the framework for a decision-making process that considers all relevant facts and interests and at the same time ensures transparency.

The German Corporate Governance Code formally concerns only listed companies and is geared to their requirements. At the same time, the need for good corporate governance applies to all companies beyond a certain size and complexity, irrespective of their corporate form or structure, including family-owned companies (a Governance Code for family-owned companies was introduced in 2004, and has been revised in 2011).

Compliance means legal requirements, many of which are not always expressly formulated, for a company’s inner organization and structure. To that end, compliance must be organized and documented appropriately to ensure that the company is not exposed to damages, or loss of reputation, resulting from criminal conduct and breach of law. In addition, good corporate governance rules serve the purpose of organizing and communicating internal processes in an efficient and transparent manner.

Establishing and modernizing systems of good corporate governance and compliance deeply affect a company’s existing structures and corporate culture. The path to the intended structure and culture is frequently cumbersome. Apart from extensive experience with such systems and a great deal of sensitivity for the idiosyncrasies of the particular company, good advice must take into consideration the existing corporate environment and established processes.

We have gathered our experience advising international corporations on good governance and compliance systems over many years both, in terms of breadth and depth of advice. Our specific approach ensures that solutions and suggestions for action are tailor-made for the respective company and its idiosyncrasies. We do not offer adaptable standard concepts; instead we use the full range of creative options suitable to our client and its representatives.