paritätsverboten

paritätsverboten is a German term that translates to "prohibition of parity" or "parity forbidden." The concept refers to legal or regulatory restrictions that prevent equal representation or equal standing in certain organizational or governance structures. In German corporate law, paritätsverboten has particular relevance regarding the composition of supervisory boards, where certain configurations of employee and shareholder representatives may be prohibited. This principle aims to prevent deadlocks in decision-making processes by ensuring that no single group can achieve equal representation that might lead to voting impasses. The concept is part of Germany's codetermination system, which balances employee participation with shareholder interests. While the term originates from German legal terminology, similar parity restrictions exist in various corporate governance systems worldwide. These provisions are typically designed to maintain effective decision-making while still providing for stakeholder representation. The implementation and strictness of such prohibitions can vary depending on the specific legal framework and industry regulations in different jurisdictions.