Citibank reported today that the Financial Supervisory Commission (FSC) of Korea has included proposal to make cumulative voting mandatory in its report to the Presidential Transition Committee yesterday. Cumulative voting was introduced in 1998, but many Korean corporates have ruled it out in their Articles of Association. As of March 31 2002, 548 out of 664 companies listed on the Korean Stock Exchange and 552 out of 701 KOSDAQ-registered companies had amended their Articles of Association to rule out cumulative voting. “If cumulative voting becomes mandatory, it will help strengthen the rights of minor shareholders,” says a local Citibank representative.
Moves In Korea To Strengthen Rights Of Minority Shareholders
Citibank reported today that the Financial Supervisory Commission (FSC) of Korea has included proposal to make cumulative voting mandatory in its report to the Presidential Transition Committee yesterday. Cumulative voting was introduced in 1998, but many Korean corporates have ruled