Germany Issues its Corporate Governance Code
In March 2002 a German government-appointed commission produced a code of corporate governance. By law, all quoted companies will have to say whether they comply with certain of its recommendations or explain how and why not. The code is too weak for some critics: companies will not have to disclose individual directors’ pay, for instance. Yet it does attempt to improve Germany’s two-tier board system-in particular, by making supervisory boards better guardians of shareholders’ interests, despite the presence on these boards of workers’ representatives and ex-managers.