Corporate Governance Working Breakfast

Corporate Governance Working Breakfast: Strengthening Integrity and Sustainability in Business and the Public Sector

As part of the Corporate Governance Working Breakfast (CGWB) series, two highly topical aspects of corporate governance were explored: the reform of financial statement oversight following the Wirecard scandal and the implementation of corporate governance in the public sector, using the City of Frankfurt as a case study. The CGWB series is hosted regularly by Professorin Dr. Julia Redenius-Hövermann, Professor of Civil and Corporate Law at Frankfurt School of Finance & Management, and Sabrina Biedenbach, Board Office Biedenbach.

Financial Statement Enforcement after Wirecard

At the 37th Corporate Governance Working Breakfast in May, Professor Dr Dieter Leuering, Partner at Flick Gocke Schaumburg, gave a keynote titled “Financial Statement Enforcement post Wirecard.”
He explained that financial statement enforcement was originally introduced to rebuild investor trust after a series of accounting scandals had shaken confidence in corporate reporting and, by extension, in the capital markets. The system aimed to ensure the legality of financial statements through external review, strengthening transparency and accountability among listed companies.

Following the Wirecard scandal, the Act to Strengthen Financial Market Integrity (FISG) fundamentally reformed this system in 2021. Since 2022, the Federal Financial Supervisory Authority (BaFin) has held exclusive responsibility for financial statement enforcement for listed companies. The reform’s goals: streamline procedures, enhance BaFin’s effectiveness, and reinforce trust in financial market integrity.

Participants then discussed key questions around materiality of accounting errors, transparency in enforcement processes, and practical experiences with BaFin’s new powers.

Corporate Governance in the Public Sector

At the 38th CGWB in August, Dr Bastian Bergerhoff, City Treasurer of Frankfurt, presented how corporate governance principles are applied in the public sector.
Frankfurt is one of the cities implementing the Public Corporate Governance Code (PCGK), designed to align the public good with economic efficiency. Dr Bergerhoff explained how this framework has made collaboration more effective, improved information flows and oversight, and strengthened transparency, accountability, and the city’s overall competitiveness.

His conclusion: Corporate governance is essential in managing public resources and navigating complex oversight structures. Sustainability, he stressed, must remain at the heart of public management — not as an obligation, but as an opportunity to shape long-term value.

Conclusion

Both sessions underscored how effective corporate governance is crucial for maintaining trust — in both the private sector and public administration. Whether safeguarding financial market integrity or ensuring the responsible use of public funds, continuous reform and institutional development are key to securing transparency, efficiency, and sustainability for the future.