Siemens Saddled with Scandals (A): Doubts over German Board Structure
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Code : GOV0029
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Region : US Germany |
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German Companies: The Board Structure American corporations are run under the supervision of a single board, whereas German corporations are organised under the German Stock Corporation Act4 and have a two-tier system. The board is divided into management board (Vorstand) and supervisory board (Aufsichtsrat).Management board looks after day-to-day functions and represents it in its dealings with the third parties. Managing directors, as members of the management board, are for a 5-year term; they can be reappointed any number of times. The management board, including its chairman, are regarded as peers and share a collective responsibility for all management decisions... Siemens Board: The Dilemmas BProsecutors in Germany, Switzerland and Italy – and in the US Justice Department and the US Securities and Exchange Commission – are investigating Siemens for a series of allegations of bribery, corruption and embezzlement. The scandal at Siemens first came to light in November 2006. “Mr von Pierer was the chief executive when much of this alleged bribery took place”12 , stated Michael Kunert, spokesman for Schutzgemeinschaft der Kapitalanleger (The Society for the Protection of Shareholders), a Germanminority shareholders group. There are two charges against the company: One, for creating slush fund to bribe foreign governments totalling €426 million ($571 million) during the 1990s, to win overseas contracts... |
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