136. Corporate Law And Accounting Legislation

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In March of this year, the German Parliament and Federal Council ratified two major pieces of legislation which have since been promulgated and taken effect. The Law on Corporate Control and Transparency (Gesetz zur Kontrolle und Transparenz im Unternehmensbereich - KonTraG) makes extensive changes primarily in the provisions of the Stock Corporation Act (Aktiengesetz) to improve corporate accountability. This bill also liberalises the provisions relating to the issuance of stock options to senior executives and other employees. Certain of the new provisions may be applicable by analogy to limited liability companies. Most provisions either take immediate effect or apply to fiscal years beginning in or after 1999.