business law

Betriebswirtschaftsrecht

Since the inception of the European Union, laws governing business and international commerce in Germany are increasingly regulated by the trade commission of the EU in Brussels.  Additionally, the standardization of business practices across Europe have caused many German firms to push toward more "Americanized" laws.  Such an example of this Americanization is the ever-increasing power of the Börsenaufsicht, the German equivalent of the Securities and Exchange Commission. 

The most notable difference between German and the US business law is, perhaps, the ability for German companies to partially own each other.  Many board members will sit on the boards of several companies -- something that is outlawed in the US.  Strict cartels are forbidden in Germany, but alliances between corporations are frequent and rely upon self-governance for their overriding authority. 

An example of the inter-ownership of corporations is the case of Allianz and its partners. The graphic below represents many of Germany's largest corporations and the other companies, in which they have substantial holdings.

The maze of arrows suggests how self-governance is possible.  The holdings, which the corporations have in each other, prevent one company from acting out of the interest of the others.  Instead, collective interest drives the actions of each corporations board of directors.