The Government Commission for the German Corporate Governance Code, which has been under new leadership for just over a year, not only wants to refine the regulatory, framework but also to make its voice heard in dialogue with stakeholders. The commission Chair, Clara C. Streit, said at a recent corporate governance conference in Frankfurt that the commission has set itself the goal of strengthening corporate responsibility, and supporting the reduction of bureaucracy, wherever necessary and sensible to do so.

„The commission is more than just the code“, Streit said at the conference hosted by the consulting firm HKP Group. The commission aspires to discuss many stakeholder interests – even controversial ones – and its pluralistic setup enables it to do so. „We want to raise our voice“, she stated. „We cannot leave the interpretation of what good corporate governance is to laymen, lawmakers, other regulators, investors, or advisors to investors. We must also be one of the louder voices.“

There is clearly a desire among stakeholders for greater transparency and comprehensibility regarding the positions of the Code Commission, and Streit understands this. „Predictability and trust in the commission's work are important.," she said, so the commission will express itself on Code-related topics, as well as other aspects, while constantly balancing different interests, and in dialogue with all stakeholders. „The majority of my time in this role is dedicated to that aspect“, Streit emphasised.

Streit also plans to intensify the dialogue with proxy advisors, especially since their role in the capital markets is becoming increasingly significant. She aims to invest more time in achieving a common understanding with these stakeholders.

The Code Commission also advocates for further improving and professionalising the work of supervisory boards in Germany. Through best practice examples, the commission aims to provide some impetus to companies. This is not primarily about expanding the code, but about providing practical guidance that can be implemented without much additional effort. Personal experience, as well as scientific insights, and international best practices, will all be incorporated. In March, the Code Commission issued its initial guidance to companies regarding the efficient conduct of shareholders' meetings.

Regarding the ongoing debate about the economic framework, Streit emphasises that corporate governance remains an important location factor. Since the German business location is currently viewed as not being in the best of shape, this work is all the more important. „We must ensure that corporate governance in Germany can compete internationally," she said, pointing out that other German companies are not the relevant benchmark for most stakeholders. „Only internationally competitive corporate governance is attractive to companies, investors, and executives, who increasingly choose where and how to operate or invest" said Streit“

Streit concludes that corporate governance issues must always be viewed as a top priority, and that „they belong in the boardrooms and not primarily in the legal department.“ This aspiration might have fallen behind somewhat over the years of the Code's existence, so there is some catching up to do.