The Korean Commercial Code (“KCC”) was amended to provide more protection for certain minority shareholders. The amended KCC came into effect at the end of 2020. We wrote many other articles on Minority Shareholder Rights including: Listen to My Mother (JV Basics).
Major Changes to the Korean Commercial Code Related to Minority Shareholder Rights
The major changes to the Korean Commercial Code related to the rights of minority shareholders including:
- All listed companies must have a separate election system of one “audit” committee member;
- Shareholder of a parent company can file representative actions (derivative suits) against directors of subsidiaries (threshold shareholdings are: At least 1% for private companies; and .5% for listed companies if the shareholder held the shares for more than six months.)
- Allowing shareholders to select minority shareholder rights under provisions in law for listed companies or under the general provisions under the Korean Commercial Code.
If you’re seeking a free of cost initial consultation, you may: Schedule a Call with an Attorney in Korea.
- Increased Protection for Minority Shareholder Rights in Korea under Revised Korean Commercial Code
- Korean Derivative Suit Law
- Involuntary Dissolution of a Company in Korea: Shareholder Disputes in Korean Companies
- Minority Squeeze-outs in Companies in Korea
- Executive Compensation Necessary to be Publicly Disclosed in Korea: Korean Commercial Law
- Rights of “Non-Registered” Shareholders in Korea
- Suing Korean Directors for Company Loses Based on Breach of Korean Fiduciary Duties
- Forming a Joint Venture in Korea? Beware a Common Pitfall
- Korean Corporate Tax Law Amendments for FY 2021
- Korean Waste Control Act Amendments of 2019