Case | HBS Case Collection | April 1995 (Revised July 1996)

Governance at Metallgesellschaft (A)

by Jay W. Lorsch and Samanta Graff


MG Corp., a U.S. subsidiary of Germany's international conglomerate, Metallgesellschaft, engaged in a disastrous hedging strategy that nearly dragged the entire enterprise into bankruptcy. This case explores issues of responsibility and accountability among the relevant boards. In doing so, it highlights the German two-tier board system of governance.

Keywords: Business Subsidiaries; Corporate Accountability; Business Conglomerates; Governing and Advisory Boards; Insolvency and Bankruptcy; Corporate Governance; Mining Industry; Chemical Industry; Germany; United States;


Lorsch, Jay W., and Samanta Graff. "Governance at Metallgesellschaft (A)." Harvard Business School Case 495-055, April 1995. (Revised July 1996.)