The National Assembly has passed a bill aimed at improving corporate transparency and protecting minority shareholders.

The bill to amend the Commercial Act was approved in a bipartisan vote on Thursday, with 220 lawmakers in favor out of 272 present.

The amendment expands corporate directors’ fiduciary duties to include shareholders and limits the voting power of major shareholders when appointing audit committee members.

The bill also mandates electronic shareholder meetings for listed companies and replaces outside directors with more independent ones.

Controversial provisions, such as the introduction of cumulative voting, were excluded and will be discussed at a later date.

The amendments had previously been vetoed by the former administration but were reintroduced and prioritized under the Lee Jae Myung administration.