Speaking to the international media earlier this week, a German Finance Ministry spokesman revealed that under a draft law set to be presented to the Cabinet for approval before the end of the year, company bosses will be held personally responsible for any false or misleading information given out by their firm.
Under the terms of the legislation, which is an amended version of a draft law initially presented in September, supervisory board members, managers and top executives may face fines equivalent to up to four times their annual salary if they suppress important information or provide false information to the public, either negligently or intentionally.
Although this represents a twofold increase in penalty size compared to the original draft legislation, the time in which investors are permitted to file a complaint if they feel that they have been the victim of any wrongdoing has been halved from six months to three.
Compensation payments in relation to the dissemination of misleading information would be calculated by examining the firm's share price movement in the thirty days after the misleading announcement is made.
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