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282 Notes to Consolidated Financial Statements

(in millions of €, except where otherwise stated and per share amounts)

tion into the allegations involving the Company’s relationship with the former

head of AUB and the AUB has also been included within the scope of the investiga-

tion being conducted by Debevoise. In April 2007, the labor union IG Metall lodged

a criminal complaint against unknown individuals on suspicion that the Company

breached the provisions of Section 119 of the Works Council Constitution Act by

providing undue preferential support to AUB in connection with elections of the

members of the Company’s works councils.

In February 2007, an alleged holder of American Depositary Shares of the Com-

pany ﬁ led a derivative lawsuit with the Supreme Court of the State of New York

against certain current and former members of the Company’s Managing and

Supervisory Boards as well as against the Company as a nominal defendant, seek-

ing various forms of relief relating to the allegations of corruption and related

violations at Siemens. The suit is currently stayed.

The Company has engaged Debevoise, an independent external law ﬁ rm, to

conduct an independent and comprehensive investigation to determine whether

anti-corruption regulations have been violated and to conduct an independent

and comprehensive assessment of the compliance and control systems of Siemens.

Debevoise reports directly and exclusively to the Compliance Committee of the

Supervisory Board (formerly the Audit Committee) and is being assisted by foren-

sic accountants from the international accounting ﬁ rm Deloitte & Touche. Debev-

oise’s investigation of allegations of corruption at the former Com Group, the

Company’s other Groups and at regional Siemens subsidiaries is ongoing.

The Company has conducted an analysis of the impact on the Company’s con-

solidated ﬁ nancial statements of issues raised by allegations of violations of anti-

corruption legislation. As previously reported, within the former Com Group, the

Company’s other Groups and regional companies a number of Business Consul-

tant Agreements (BCAs) and similar sales-related arrangements have been identi-

ﬁ ed. The Company has identiﬁ ed a large volume of payments made in connection

with these contracts as well as other payments for which the Company has not

been able either to establish a valid business purpose or to clearly identify the

recipient. These payments raise concerns in particular under the Foreign Corrupt

Practices Act (FCPA) in the United States, anti-corruption legislation in Germany

and similar legislation in other countries. The payments identiﬁ ed were recorded

as deductible business expenses in prior periods in determining income tax provi-

sions. As previously reported, the Company’s investigation determined that cer-

tain of these payments were non-deductible under tax regulations of Germany

and other jurisdictions.