Codetermination In Smaller Enterprises : Germany

In stock corporations and partnerships limited by shares which were established prior to 10 August 1994 and do not have more than 2,000 employees, one third of the members of the supervisory board must be representatives of the employees. Family-owned companies with fewer than 500 employees are exempted from this requirement. Stock corporations which were established on or after 10 August 1994, or companies with another legal form which were transformed into stock corporations on or after this date, and which employ fewer than 500 persons do not fall under the Works Constitution Act of 1952.

Limited liability companies, profit-oriented and trading cooperatives, and mutual insurance companies are subject to this Act if they employ between 500 and 2,000 persons. Although this one-third share hardly gives employees any say in decision-making, it does give them access to important information.