Politics
New legislation regulating syndics clarifies the role of Compliance Officer
On December 17, 2015 the Bundestag passed the law introducing “new justice for syndic lawyers” (18/5201, 18/6915) and the Bundesrat passed it the day after. The law, which came into force on 1 January 2016 was hailed by the Association of Compliance Officers as introducing the long awaited framework of reference.
“Syndic lawyers, especially those who act as compliance officers, who often find themselves out on a limb without guidelines or directives, will benefit from this law and the transparency it creates for their position within the company“ remarked Cornelia Koch, first vice president of The Association of Compliance Officers and Lead Senior Legal Counsel Compliance and syndic lawyer at SAP SE.
A syndic lawyer working in compliance has to assess the validity of claims and explain the procedures and dynamics required by the increasingly extensive range of regulations and jurisdiction involved in contracts with customers, partners and suppliers of the employer. Moreover, they also guide contractual negotiations with the legal departments of other companies, and public bodies and authorities. This recent legislation not only clarifies the job description but tightens up ambiguities and redundancies in the previous law.
Kaiser/Tengelmann
Federal Minister of Economic Affairs and Energy Sigmar Gabriel (SPD) plans to permit the controversial takeover of supermarket chain Kaiser's Tengelmann by the Hamburg based retail giant Edeka by special permit, subject however to strict conditions. Edeka must guarantee that the approximately 16,000 jobs at Kaiser's Tengelmann, which was in the red for many years, are completely safeguarded for at least five years and the employees are to be paid collectively, insists Gabriel. If Edeka fulfils all conditions, the SPD leader can invoke a minimum concession of the 'no' vote from the Federal Cartel Office to justify overruling the negative verdict handed down by the monopolies commission. The Federal Cartel Office had rejected the purchase of approximately 450 stores by Edeka for reasons of competitiveness. The Edeka Group already controls 25 percent of food retailing. The two companies and other competitors have time to express their opinions on these conditions after which Gabriel will make the final decision.
The Verdi trade union praised Gabriel’s idea "The demands of the Minister go far beyond what Kaiser's Tengelmann and Edeka originally had in mind."