The Law on Control and Transparency in Business (German: Gesetz zur Kontrolle und Transparenz im Unternehmensbereich) (abbr.
The KonTraG specifies and expands mainly the provisions of the German Commercial Code and the Stock Corporation Act.
Section 91(2) of the Law stipulates that the executive board is required to "take appropriate measures, in particular to set up a monitoring system so that developments that jeopardize the continued existence of the company are quickly recognized."
In contrast, the so-called small AG's are largely exempted from compliance with the KonTraG provisions.
Furthermore, for the first time, the granting of subscription rights to employees and members of the management board from a contingent capital increase pursuant to Section 192 AktG was placed on a legal footing.