Germany’s AG corporate model faces extinction without urgent reform

After 60 years, Germany’s corporate backbone is cracking under pressure. Will sweeping reforms save the AG—or will companies flee abroad for flexibility?

, and Administrator

2025 December 17 . 11:13 PM

1 min read

In this picture there are group of people sitting on the chair. There are bottles, cloth, plate on... — In this picture there are group of people sitting on the chair. There are bottles, cloth, plate on the table. There are three men who are sitting on the chair. There is a mic, laptop on the table. There is a banner, screen, podium , wires , switchboard at the background.

Germany’s AG corporate model faces extinction without urgent reform

A new study warns that Germany's Aktiengesellschaft (AG) is outdated and risks losing ground to foreign legal structures like the Dutch Naamloze Vennootschap (N.V.). After 60 years, the traditional corporate form now faces calls for major reform from White & Case and the German Shareholders' Association. Researchers argue that without changes, the AG could struggle to remain competitive against alternatives. The study gathered insights from written surveys of legal department heads at listed German companies and interviews with industry experts. Findings highlight deep concerns about the AG's ability to meet modern business needs. Authors propose sweeping reforms, including simpler equity financing, streamlined general meetings, and clearer roles for supervisory boards. The report stresses that reform is critical to prevent the AG from becoming obsolete and help German businesses stay competitive in global markets. Without action, the study warns, companies may increasingly turn to foreign legal forms instead.