"Following the reorganisation of Schaeffler group's corporate structure in line with capital market practice, the newly created supervisory board of Schaeffler GmbH began work this Friday in Herzogenaurach," southern Germany, a statement said.
"Ten members of the board will represent the capital side, and ten will represent the employees," it added.
Georg Schaeffler was elected president of the board while his mother, Maria-Elisabeth Schaeffler, and Jürgen Wechsler were named as deputy chairpersons.
In February 2009, Schaeffler agreed with the German trade union IG Metall to introduce co-determination for the company to safeguard its future.
Schaeffler is a family-owned group that tried to take over the much bigger Continental before running into financial problems that led to a major financing deal in August 2009 with creditor banks.
Schaeffler now owns 42.17 percent of the shares in Continental, according to the latter's website.
Shaeffler reported first half 2010 sales of around 4.6 billion euros and a core profit margin of 16 percent, the statement said.