# kaal:claim:1558614-018

**Claim.** Codetermination makes the German supervisory board's decision making more cumbersome, so a co determined Aufsichtsrat may not respond quickly enough to fast moving events such as an escalation of portfolio risk or a liquidity crisis.

**Type.** failure  **Support.** argued

**Holds when.**

- corporations large enough to trigger employee representation on the supervisory board
- employee representatives may also carry union political objectives

**Source quote.**

> It may be difficult for a co-determined Aufsichtsrat to respond quickly to rapidly changing developments, such as an escala- tion of financial risk in a securities portfolio or a liquidity crisis.

**From.** Painter and Kaal, *Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in* (2010), III. Cultural Components of Risk Taking and Controlling Risk, page 23

**Cite as.** Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614

**Verify.** sha256 of source PDF `e898211630f4116879329d6de8397523dca5b066864147421aa5cbc7429dc83b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Painter%20and%20Kaal%20-%202010%20-%20Initial%20Reflections%20on%20an%20Evolving%20Standard%20Constraints%20on%20Risk%20Taking%20by%20Directors%20and%20Officers%20in.pdf

**Failure mode.** slow co-determined board  (family: board-and-oversight-failure)

**Topics.** corporate-governance, compliance, defi, governance-design

**Keywords.** codetermination, aufsichtsrat, board-monitoring, liquidity-crisis, german-governance

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.