South Korea: improving the functioning of annual general meetings

Proposals intended to improve the operation of annual general meetings have been published by the Financial Services Commission and the Ministry of Justice: see here (pdf). One of the problems identified is the concentration of AGMs over a short period of time. This is to be addressed by a change in the law limiting the number of AGMs that can be held on particular days.

It is also noted that it is unclear whether shareholders can receive a small gift or other incentive for attending an AGM because of the prohibition, under Article 467-2 of the Commercial Act, of the grant of pecuniary benefits to shareholders in connection with the exercise of their rights as shareholders. The Ministry of Justice proposes to remove this uncertainty by publishing an interpretation to make clear that shareholders can receive a benefit, of a value that does not breach social norms, for their participation at the AGM.

Other proposals address the information that shareholders receive and how they receive notice of the AGM.