Revised Commercial Act weigh on firms ahead of shareholders meeting season |
South Korea s companies (Yonhap)
South Korea’s listed companies are under growing pressure to overhaul their audit systems in time for their regular shareholders meetings, slated for February and March next year, due to a new set of corporate regulations set to take effect soon.
As the new rules restrict the voting power of owner families in the appointment of auditors, conglomerates will focus on defending their managerial authority from external influence while smaller businesses are likely to struggle to attract qualified personnel.
The Korea Listed Companies Association recently sent out an official letter to member firms, delivering the gist of the “Three Acts for Fair Economic Order,” officials said Monday. The Kosdaq Listed Companies Association, a group of firms on the nation’s tech-heavy secondary bourse, is also drafting a similar message for its member firms.