Lee Jae-myung, chairman of the main opposition Democratic Party of Korea, proposed a public debate on the revision bill to the commercial law on the 22nd. The move is aimed at setting the stage for public debate as the business community strongly protested the Democratic Party's revision bill, which would expand the duty of directors' loyalty to shareholders, by issuing an emergency statement on the previous day. The move is aimed at seeking to take the initiative in issues by coordinating differences between 15 million investors and the business community. Above all, the move is aimed at dispersing attention focused on Lee's rising judicial risk into policy issues.
Representative Lee even issued an urgent statement at an expanded executive meeting held at the National Assembly on the day, asking conglomerate presidents to refrain from making difficulties in corporate management over the proposed revision of the commercial law. On the other hand, small investors are strongly demanding a prompt revision, he said, proposing a public debate between the pros and cons. Lee added that he would take the mound as a debater and listen to both sides' positions before finalizing the party's position.
The Minjoo Party's proposed amendment to the Commercial Law calls for protecting the rights and interests of minority shareholders. The bill also calls for imposing a "duty of loyalty" and a "duty of protection" for shareholders at the same time on the board of directors of △ companies, and mandating the implementation of a concentrated voting system (a method that grants voting rights to shareholders as many as the number of directors elected at the general shareholders' meeting) by listed companies with total assets of 2 trillion won (△1 billion U.S. dollars) or more. It was considered a long-cherished project in the progressive circles as the "complete version of economic democratization" but has been fizzled out every time due to opposition from the business community and conservative circles.
For this reason, some analysts say that the proposal for an open debate will be a double card to persuade both the progressive camp and the business community. It is possible to seek a flexible pragmatist image that accepts some of the opposition from the business community while keeping the cause of "protecting small shareholders" on the back of the public sentiment of ant investors.
Chairman Lee said, "No one will oppose the protection of small investors right now. We can compromise on that method and find a reasonable solution," and he also expressed his intention not to insist on the Democratic Party's amendment. It is expected that the big framework of the bill will not be shaken, but that companies will deal with the problem of breach of trust, which is concerned about abuse. "We are preparing supplementary measures to prevent the management from being punished for breach of trust by applying mutatis mutandis to the Supreme Court precedent that exempts management from making a management judgment 'faithfully'," said Jin Sung-joon, chairman of the policy committee.
Government issues are the opposition of the ruling camp. The People's Power is proposing a revision of the Capital Market Act, which can apply tweezers only to listed corporations, as an alternative to the commercial law, which comprehensively restricts corporate management rights. "Companies can be exposed to the risk of management rights due to constant litigation by minority shareholders and attacks by foreign activist funds," said Kim Sang-hoon, chairman of the policy committee. "Are you trying to burn the bed for three days to catch the bedbugs?"
First of all, the direction is good.
If the proportional profit of shareholders is guaranteed through the amendment of the Commercial Act,
There will be no alienation from the management premium, and there will be fewer things to suffer from split listing.
Of course, you can insert additional provisions for management risk,
What matters is that the interests of the so-called major shareholders are the only ones who are monopolizing them
I think it will be possible to demand fair distribution.
I'm scared that I'll see the Cham Ching Conservatives say anything again.
Still, I hope you push it in a good direction.