Korea tightens corporate governance disclosure rules to strengthen shareholder protections
All companies listed on the benchmark KOSPI will face tougher disclosure requirements on boardroom changes and major corporate transactions under new rules designed to give shareholders greater oversight of corporate governance, financial authorities said Thursday. The changes, announced by the Financial Services Commission and the Korea Exchange, expand the information companies must provide in…
The Financial Services Commission and Korea Exchange have announced stricter disclosure rules for companies listed on the KOSPI index, aimed at enhancing shareholder oversight of corporate governance. These new regulations, effective for all 826 KOSPI-listed companies, require greater transparency in boardroom changes and major corporate transactions.
The primary objective is to prevent companies from circumventing the revised Commercial Act, which mandates the use of cumulative voting for minority shareholders. Under this law, companies with assets exceeding 2 trillion won must adopt cumulative voting, allowing shareholders to consolidate their votes behind a single director candidate, thereby increasing the likelihood of electing minority shareholder representatives to the board.
Some firms have attempted to skirt this requirement by reducing their board sizes or altering their structures in response to the new rules.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
