The coalition agreement (Koalitionsvertrag) adopted this week by the future German federal government – which governs the cooperation of the joint coalition government during the upcoming legislative period until 2025 – comprises a number of legislative proposals relevant to corporate compliance and governance structures. Although these legislative proposals are only vaguely described in the coalition agreement, it is clear that the new German government intends to further regulate entrepreneurial activity in the following aspects in the coming years:
The new government intends to protect honest companies from unlawful competitors by introducing a German Corporate Liability Act (Verbandssanktionengesetz). The rules on corporate sanctions, including the level of sanctions, are to be improved in the coming years to provide companies with legal certainty regarding their compliance obligations and to create a more precise legal framework for internal investigations. Since the previous draft law was mainly driven by the Social Democrats, chances are high that a similar version will be passed in the near future.
We are re-activating our online commentary regarding the draft law (www.verbandssanktionengesetz.de) to provide you with relevant updates to this key legislation.
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