Germany Corporation Governance can be characterised as follows:
1. By law, Germany is statue by a two-tier board system, which include
supervisory board and management board. The shareholder elects supervisory board
while the management board is chosen and supervised by the supervisory board. The
history of the two-tier board system could be seen from the mandatory supervisory
board of 1870 and mandatory disclosure which were set for permanently giving up
their charter requirement and former state control (Hopt, Klaus J., 1998). The
supervisory board is historically established in order to strictly separate outside board
to control the management for the shareholder interests and also to protect other
stakeholders.