| In recent years,bilateral trade between the two countries has increased continously.Both Chinese companies investing in Germany and German companies investing in China,they will inevitably encounter with laws and regulations of the host countries.To understand and comply with local laws and regulations,is the primary condition of investment success,whilst breach of the laws and regulations will lead to severe punishment,including huge fines.Therefore,compliance is of vital importance for the companies’ business development.In the latest years,many multinational companies have suffered huge fines in China,which also indicates the significance of the compliance from a perspective to the contrary.To ensure the realization of internal compliance function in the companies,corresponding compliance organizations should be established.Both Chinese and German laws and regulations have set certain requirements regarding structure of the internal compliance organizations.This thesis will analyze these requirements,so as to provides a clear reference for the compliance organization construction.Firstly,as most of the multinational companies are stoek companies,this thesis mainly focuses on analysing the requirements for the compliance organization of this kind of companies.Secondly,compliance already has a development history of 20 years since its introduction into Germany,now it is on a relatively mature stage,while compliance in our country,however,is still at the beginning.This thesis intends to find the deficiencies of the present compliance system in our country through a comparative perspective of view,and references from the German law in this regard as well.Thirdly,since compliance risks in banks,security companies and insurance companies are ususally higher than general stock companies,the requirements for the compliance organisations in these areas are accordingly higher as well.Hence,this thesis also adresses thhe compliance organization requirements for these special areas and its particularity.Finally,in December 2014,the international standardization organization(hereafter "ISO")issued a global applicable compliance guidance,namely the ISO 19600,this guidance reflects the new direction of the international development of compliance,which will also be analyzed in this thesis.The Introduction of the paper focuses on the practical significance of compliance by illustrating the severe punishment confronting the multinational companies who have violated the laws and regulation.Chapter one,starting with the definition,the basic concepts of compliance in both countries would be analysed.Then,the same goes with the analysis of the potential compliance risks.Because of these risks,in accordance with the relevant laws and regulation of their respective countries,companies and its senior management should bear the corresponding responsibility.Chapter two focuses on the compliance requirements for the general stock companies,respectively in China and Germany.The“Shares Law"(AktG)in Germany and“Company Law" in China would be thoroughly analyzed.Although compliance research in Germany has been conducted for quite a long time,but the“Shares Law"does not expressly take it into account.Therefore,the authors would try to find other legal ground for compliance in“Corporate Governance Code”as well.Chapter three focuses on the compliance requirements for the stock companies in banking,securities,insurance sectors,respectively in China and Germany.These companies are normally exposed to higher compliance risks,Therefore,specific compliance requirements with regard to these companies are set forth in the relevant laws and regulation of both countries..Chapter four focuses on the impact of ISO19600,both in China and Germany.As the compliance research in our country still remains at an initial stage,the impact of the ISO19600 in this part is mainly reflected in the impact on Germany.The conclusion summarizes the key viewpoints in this article. |
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