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.
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