Transparency of ownership and control in Germany

We first analyze legal provisions relating to corporate transparency in Germany. We show that despite the new securities trading law (WpHG) of 1995, the practical efficacy of disclosure regulation is very low. On the one hand, the formation of business groups involving less regulated legal forms as intermediate layers can substantially reduce transparency. On the other hand, the implementation of the law is not practical and not very effective. We illustrate these arguments using several examples of WpHG filings. To illustrate the importance of transparency, we show next that German capital markets are dominated by few large firms accounting for most of the market’s capitalization and trading volume. Moreover, the concentration of control is very high. First, 85% of all officially listed AGs have a dominant shareholder (controlling more than 25% of the voting rights). Second, few large blockholders control several deciding voting blocks in listed corporations, while the majority controls only one block

Free and Open Source Software in Municipal Procurement:The Challenges and Benefits of Cooperation

The use of free and open source software by municipal governments is the exception rather than the rule. This is due to a variety of factors, including a failure of many municipal procurement policies to take into account the benefits of free software, free software vendors second-to-market status, and a lack of established free and open source software vendors in niche markets. With feasible policy shifts to improve city operations, including building upon open standards and engaging with free software communities, municipalities may be able to better leverage free and open source software to realize fully the advantages that stem from open software development

Post-Election Audits: Restoring Trust in Elections

With the intention of assisting legislators, election officials and the public to make sense of recent literature on post-election audits and convert it into realistic audit practices, the Brennan Center and the Samuelson Law, Technology and Public Policy Clinic at Boalt Hall School of Law (University of California Berkeley) convened a blue ribbon panel (the "Audit Panel") of statisticians, voting experts, computer scientists and several of the nation's leading election officials. Following a review of the literature and extensive consultation with the Audit Panel, the Brennan Center and the Samuelson Clinic make several practical recommendations for improving post-election audits, regardless of the audit method that a jurisdiction ultimately decides to adopt

Vulnerability analysis of three remote voting methods

This article analyses three methods of remote voting in an uncontrolled environment: postal voting, internet voting and hybrid voting. It breaks down the voting process into different stages and compares their vulnerabilities considering criteria that must be respected in any democratic vote: confidentiality, anonymity, transparency, vote unicity and authenticity. Whether for safety or reliability, each vulnerability is quantified by three parameters: size, visibility and difficulty to achieve. The study concludes that the automatisation of treatments combined with the dematerialisation of the objects used during an election tends to substitute visible vulnerabilities of a lesser magnitude by invisible and widespread vulnerabilities.Comment: 15 page

Corporate governance in Turkey: implications for investments and growth

Background Paper for Turkey’s Investment Climate Assessment 200

Explanation and trust: what to tell the user in security and AI?

There is a common problem in artificial intelligence (AI) and information security. In AI, an expert system needs to be able to justify and explain a decision to the user. In information security, experts need to be able to explain to the public why a system is secure. In both cases, the goal of explanation is to acquire or maintain the users' trust. In this paper, we investigate the relation between explanation and trust in the context of computing science. This analysis draws on literature study and concept analysis, using elements from system theory as well as actor-network theory. We apply the conceptual framework to both AI and information security, and show the benefit of the framework for both fields by means of examples. The main focus is on expert systems (AI) and electronic voting systems (security). Finally, we discuss consequences of our analysis for ethics in terms of (un)informed consent and dissent, and the associated division of responsibilities

RIES: Internet voting in action

RIES stands for Rijnland Internet Election System. It is an online voting system that was developed by one of the Dutch local authorities on water management. The system has been used twice in the fall of 2004 for in total approximately two million potential voters. In this paper we describe how this system works. Furthermore we do not only describe how the outcome of the elections can be verified but also how it has been verified by us. To conclude the paper we describe some possible points for improvement

Combatting electoral traces: the Dutch tempest discussion and beyond

In the Dutch e-voting debate, the crucial issue leading to the abandonment of all electronic voting machines was compromising radiation, or tempest. Other countries, however, do not seem to be bothered by this risk. In this paper, we use actor-network theory to analyse the socio-technical origins of the Dutch tempest issue in e-voting, and its consequences for e-voting beyond the Netherlands. We introduce the term electoral traces to denote any physical, digital or social evidence of a voter's choices in an election. From this perspective, we provide guidelines for risk analysis as well as an overview of countermeasures

Changing patterns of corporate disclosure in continental Europe : the example of Germany

This article presents a structural overview of corporate disclosure in Germany against the background of a rapidly evolving European market. Professor Baums first makes the theoretical case for mandatory disclosure and outlines the standard, regulatory elements of market transparency. He then turns to German law and illustrates both how it attempts to meet the principle, theoretical demands of disclosure and how it should be improved. The article also presents in some detail the actual channels of corporate disclosure used in Germany and the manner in which German law now fits into the overall development of the broader, European Community scheme, as well as the contemplated changes and improvements both at the national and the supranational level