In the 60th anniversary year of the German Stock Corporation Act (Aktiengesetz), the German stock corporation (AG) is losing its appeal. According to a study by the Deutsches Aktieninstitut and White & Case, an increasing number of companies are opting for the Dutch N.V. as their legal form, as it offers greater flexibility in raising capital and more efficient general meetings. This trend is particularly evident among biotech firms, which are increasingly choosing the N.V. Investment bankers and advisors are recommending that companies consider alternatives to the AG. Key points of criticism include the law on contesting resolutions, lengthy procedures, and large supervisory boards. The study calls for a fundamental reform of the Stock Corporation Act to strengthen the competitiveness of German companies. The Ministry of Justice is already reviewing potential changes.
Read the full article in the "Börsen-Zeitung" (German).
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