KCCI: "Rejection of Commercial Act Amendment Bill in Plenary Session Reflects Corporate Management Realities"

Amendment to the Commercial Act Rejected at the National Assembly Plenary Session on the 17th

The Korea Employers Federation stated on the 17th that the rejection of the amendment to the Commercial Act in the National Assembly plenary session reflects concerns that "in the reality of companies where various interests collide, the amendment could increase uncertainty in management decisions and cause serious confusion in corporate management."

They added, "Our companies will actively strive to protect minority shareholders and enhance trust in the capital market going forward," emphasizing, "We expect a cautious and balanced approach that reflects corporate competitiveness and international standards in future discussions on this matter."

On the afternoon of the same day, the National Assembly plenary session voted on the 'Reconsideration of the Partial Amendment to the Commercial Act.' The result was 196 votes in favor, 98 against, 1 abstention, and 4 invalid votes, leading to the bill's rejection. For a bill returned to the National Assembly after the President exercises the right to request reconsideration to pass, it must have the attendance of more than half of the total members and approval by two-thirds of the attending members. The amendment to the Commercial Act put to vote aimed to expand the duty of loyalty of directors not only to the company but also to shareholders and to mandate electronic shareholder meetings.

National Assembly Main Chamber. Photo by Yonhap News

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