2. Share diversification in German Corporation is rather different than in UK
and US Corporation. In 1996 (Klaus, Supra p.232), the domestic shares (nominal
value) were held overwhelmingly by non-financial companies (37.3%), while private
households and institutional investors had a much smaller part of the shares (private
households including organisations: 15.7% banks and investment funds: 9.5 and 5.8 %; insurance companies: 5.6% public sector: 10.9%). 85.4% of the largest quoted
companies had a single (major) shareholder owning more than 25% of the voting
shares, and 57.3% had a majority shareholder. The typical publicly held corporation
can be seen as one controlled by a large shareholder when minority has little say in
the corporate decision, these was accounted for at least 90% of AG in Germany
( Pinto & Vesentini, 2002, p.60). It usually belongs to the groups including the small
family companies, corporations with single shareholders, subsidiary corporations.
Only 10 percent of AG has a similar shareholder pattern like in the UK and US where
there is no major shareholder that can influence the business decision (Pinto &
Vesentini, Supra). In Germany, there is no statue indicates the limitation of the share
that the individual or corporation can held like in UK and US. Therefore, shareholders
in Germany can be seen not as diverse as in UK and US.