Ruling and Opposition Parties, Venture Industry Unite: "Multiple Voting Rights Law Must Pass This Time"

원본보기 아이콘

Venture industry representatives and lawmakers from both ruling and opposition parties appealed for the final passage of the bill introducing multiple voting rights.

The Innovation Venture Organizations Council held a press conference at the National Assembly Communication Hall on the morning of the 27th, urging the passage of the amendment to the "Special Measures for the Promotion of Venture Businesses Act" (hereinafter referred to as the Venture Business Act), which grants multiple voting rights to unlisted venture companies. [Related article="Running tirelessly"... Behind the scenes of the multiple voting rights bill passage]

The Innovation Venture Organizations Council is a private council of innovation and venture organizations established in 2017, with 20 organizations including the Korea Venture Business Association participating.

The amendment to the Venture Business Act was proposed by lawmakers from both parties starting in 2020 and passed the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee at the end of December the following year. After being held up for a long time in the Legislation and Judiciary Committee, it was approved on the 26th and is now awaiting a vote in the plenary session of the National Assembly.

The council stated, "This bill is essential for unlisted venture founders to continue stable management activities without concerns about management rights threats due to equity dilution when raising external capital and hostile mergers and acquisitions (M&A). It embodies the hopes of 35,000 venture companies and 830,000 workers."

At the press conference, lawmakers Kim Byung-wook, Park Soo-young, and Han Mu-gyeong from the People Power Party, and Kim Kyung-man from the Democratic Party, expressed their support for the passage of the multiple voting rights bill in the plenary session.

Representative Park introduced, "Most advanced countries with many unicorn companies, such as the United States, China, India, and the United Kingdom, have already adopted and operate this system as a model of advanced nations."

Representative Kim Kyung-man explained, "To prevent unfair succession by large corporations, the multiple voting rights convert to common shares upon inheritance, transfer, or resignation from the board. Also, if incorporated into a publicly disclosed business group, conversion to common shares is immediate to prevent unfair strengthening of control."

Representative Han urged, "I strongly urge the plenary session scheduled for this afternoon to pass this bill without fail," and requested, "I ask both ruling and opposition parties to work together to create a virtuous cycle venture ecosystem where venture companies can grow and develop."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.