The bad habit, widespread in Europe, of a bank’s – and more generally a stock corporation’s – CEO leaving the company due to age to become Chairman of the Supervisory Board. The complaint here is that – the former CEO in the new position conceals his own mistakes (withdraw from discussion) and/or – his
successor can throw obstacles in the path. The change of top management in no way contributes to the transparency of a company. – Investor protection groups therefore demanded a ban from the supervisory authorities with regard to banks. However, it is not within the power of supervisory authorities to interfere with legal provisions of German Stock Corporation Act [Aktiengesetz]. If the much-criticized change of top management at banks is to be stopped, then the only way is through appropriate resolutions by the Annual General Meeting or, in general, through an amendment to the Stock Corporation Act. – See Expertise.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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