BGHZ 135, 244 (II ZR 175/95, 1997)

ARAG/Garmenbeck

ARAG/Garmenbeck clarified that the supervisory board must independently assess the corporation's claims against management and actively decide whether to pursue them in the company's interest, making it a cornerstone of German director-liability law.

Holding

ARAG/Garmenbeck clarified that the supervisory board must independently assess the corporation's claims against management and actively decide whether to pursue them in the company's interest, making it a cornerstone of German director-liability law.

Issues

supervisory-board oversightpursuit of claims against managementbusiness judgment and corporate interest