“The Influence Of Corporate Governance Rules for the Financial Sector on the Interpretation of the General Corporation Law in Germany”
Regulations for the corporate governance of financial institutions have been on the rise since the financial crisis. Some courts and academics have argued that parts of these new rules do not only apply to the financial sector but also to corporations in general – a phenomenon that has been termed “Ausstrahlungswirkung”, i.e. transmission of governance standards. The question arises whether such spill-over is legally possible and can be reasonably justified and if so, what it means in practice.