Corporate Governance
The German Corporate Governance Code and the German Stock Corporations Act represent the legal basis for the business activities of Colonia Real Estate AG.
We understand Corporate Governance to mean responsible corporate management and controls geared to creating value on a permanent basis. The measures taken to this end include clear communications and close relations with our shareholders, transparent financial reporting, success-oriented compensation for managers and employees, and constructive, efficient cooperation between the Managing Board and the Supervisory Board.
German Corporate Governance Code
Shareholders
The shareholders are particularly important to Colonia Real Estate AG and therefore all laws and regulations that apply to them are strictly observed at all times. The measures taken to this end include the participation of shareholders in fundamental decisions such as, for example, significant structural changes, amendments to the articles of incorporation and bylaws and the application of the unappropriated net profit. All shares carry the same voting rights. Furthermore, the shareholders are entitled to appoint proxies to represent them at the annual shareholders' meeting if they are unable to attend personally.
Managing Board
The company is managed by the Managing Board, under the latter's own responsibility. The managing directors of the subsidiaries meet at regular intervals to discuss strategic issues and other matters relevant to the company. With regard to all investment decisions, the Managing Board is advised in a supporting capacity by the Investment Committee, which meets once a week and is composed of all the company's department managers. This committee continually analyzes investment properties and the real estate portfolio and develops recommendations which are submitted to the Managing Board for a final decision.
Supervisory Board
The Managing Board is supervised and advised by the Supervisory Board in matters relating to the management of the company. Furthermore, the Managing Board requires the approval of the Supervisory Board for all fundamentally important transactions. The internal rules of procedure of the Managing Board serve as the basis for its actions. The Supervisory Board adopts and monitors compliance with the information and reporting duties of the Managing Board.
Success-oriented compensation
The compensation of the members of the Managing Board is determined on the basis of successful results, in accordance with customary industry practices. Evaluation criteria include, among others, the annual profit or loss and other customary international standards. In compliance with the recommendations of the Code, in addition to a fixed component of compensation, members of the Supervisory Board also receive a variable component oriented to short-term results.
Transparency in financial reporting
In general, the company's consolidated financial reporting is conducted in accordance with IFRS. More specifically, it conforms to the basic principles of the EPRA Standards. This practice assures the comparability of our company with the company's competitors in Germany and abroad and ensures a high degree of transparency.
