Supervisory board
From Wikipedia, the free encyclopedia
A supervisory board is a group of individuals chosen by the stockholders of a company to promote their interests through the governance of the company and to supervise and control the executive directors and CEO.
[edit] Germany
In Germany the Supervisory Board (Aufsichtsrat) of large corporations is composed of 20 members, 10 of which are elected by the shareholders, the other 10 being employee representatives. The Supervisory Board oversees and appoints the members of the Management Board (Vorstand) and must approve major business decisions.
The supervisory board, in theory, is intended to provide a monitoring role. However, appointment of Supervisory board members has not been a transparent process and has therefore led to inefficient monitoring and poor Corporate Governance in some cases.(Monks and Minow,2001)
