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Bill Requiring Board of Directors to Prioritize Shareholders' Interests Passes Parliament

Written: 2025-03-13 19:29:40Updated: 2025-03-13 19:30:28

Bill Requiring Board of Directors to Prioritize Shareholders' Interests Passes Parliament

Photo : YONHAP News

Revisions to the Commercial Act put forth by the main opposition Democratic Party, requiring boards of directors to prioritize the interests of shareholders, passed the opposition-dominated National Assembly.

The revision bill on Thursday won support from 184 of the 279 lawmakers in attendance, while 91 opposed it and four abstained.

As the ruling People Power Party(PPP) decided to oppose the bill as part of its party line, all of its representatives either voted against it or abstained.

The bill expands board members' duties that were previously limited to the company, to now include shareholders as well, and also requires electronic shareholders' meetings at listed firms.

The bill is set to take effect one year after its enactment.

The PPP had opposed the revision on concerns that it will place excessive burden on businesses, and intends to recommend that Acting President Choi Sang-mok veto the bill.

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