Merck 2010 Annual Report Download - page 113
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The general partner E. Merck KG holds around 70% of the total capital of Merck KGaA (equity
interest); the shareholders hold the remainder, which is divided into shares (share capital).
E. Merck KG is excluded from the management of business activities. The general partners with
no equity interest (Executive Board), on the other hand, manage business activities. Neverthe-
less, due to its substantial capital investment and unlimited personal liability, E. Merck KG has
a strong interest in the businesses of Merck KGaA operating efficiently and in compliance with
procedures, and exercises its influence accordingly. Merck KGaA’s participation in the profit/
loss of E. Merck KG in accordance with Articles 26 et seq. of the Articles of Association further
harmonizes the interests of the shareholders and of E. Merck KG.
E. Merck KG appoints and dismisses the Executive Board. In addition, E. Merck KG has created
bodies – complementing the expertise and activities of the Supervisory Board – to monitor and
advise the Executive Board. This task applies primarily to the Board of Partners of E. Merck KG.
Based on the provisions of the German Stock Corporation Act, the Articles of Association of
Merck KGaA and the rules of procedure of the various committees, Merck KGaA has a set of
rules for the Executive Board and its supervision that meet the requirements of the Code. The
investors, who bear the entrepreneurial risk, are protected as provided for by the Code.
This is illustrated by the following chart:
Share capital
EUR 168,014,927.60
Equity interest
EUR 397,196,314.35
Limited liability shareholders General partner
E. Merck KG (with equity interest)
General Meeting
Supervisory Board
16 members (Sections 1, 7 MitbestG *)
Board of Partners E. Merck KG; 9 members
Personnel Committee, Finance Committee,
R&D Committee
General partner with no equity interest
(with power of management and representation)
* German Co-Determination Act
Company 109Consolidated Financial Statements More informationManagement Report Corporate Governance
Statement on corporate governance