"Disclosure of Shareholder Proposal Details and Processing History to Investors Before the General Meeting"

Financial Supervisory Service Revises Shareholder Proposal Disclosure Form
Mandatory Inclusion of Shareholder Proposals in Business Reports

Financial Supervisory Service, Yeouido, Seoul. Photo by Younghan Heo younghan@

From now on, when a listed company receives a shareholder proposal, it must share detailed information about whether the agenda item was adopted and the progress of its handling with investors before the general meeting of shareholders.

On the 11th, the Financial Supervisory Service announced that it has revised the disclosure format to require the inclusion of related information, from the fact of raising a shareholder proposal to the progress of its handling, in regular reports (business and semi-annual reports).

According to the revised disclosure format, all details of the exercise of minority shareholder rights, such as shareholder proposals, must be recorded by the submission deadline of regular reports, including the business report (submitted one week before the general meeting of shareholders). This must include the fact of raising the shareholder proposal, the content of the shareholder proposal, whether the shareholder proposal was adopted as an agenda item at the general meeting, the progress of handling the shareholder proposal, the results of the general meeting, and the discussion content.

Currently, listed companies record the status of shareholder proposal exercises and the discussion content of the general meeting of shareholders in regular reports. However, there have been continuous criticisms that disclosures are not made timely and sufficiently due to limited scope of recording and the absence of clear preparation guidelines.

The Financial Supervisory Service explained, "The revision of the disclosure format will help both the company’s general meeting of shareholders process and shareholders’ rational decision-making," and added, "The Financial Supervisory Service will continue to identify and improve areas that require additional supplementation to foster a sound capital market."

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