Corporations listed on the Korea Exchange's main board that submit corporate governance reports next year must describe shareholder meeting operations and cash dividend policies in more detail.
In addition, starting next year, mandatory disclosure of corporate governance reports will expand to all KOSPI-listed companies. The filing deadline is June 1 next year.
On the 29th, the Korea Exchange (KRX) gave advance notice of key inspection items for next year's corporate governance reports by KOSPI-listed companies.
A total of nine key inspection items were selected this time, consisting of four core indicators and five detailed principles. The inspection items related to the core indicators are: ▲ issuing a notice convening the shareholder meeting four weeks in advance ▲ holding the shareholder meeting on a date other than the concentration day ▲ providing predictability regarding cash dividends ▲ holding quarterly meetings between the internal audit body and the external auditor.
In the detailed principles, while reflecting the inspection items related to the core indicators, it additionally specifies whether efforts were made to disperse shareholder meetings, such as amending the articles of incorporation regarding the record date for voting rights, and whether shareholder protection policies were prepared when ownership and business structures change.
The exchange said it plans to focus its inspection on whether listed companies prepared the relevant items accurately and thoroughly in line with the presented guidelines.
In particular, the exchange will closely examine the detailed principles to see whether the required entries were fully provided (content sufficiency), the basis for judging compliance was stated, and, in cases of noncompliance, whether reasons and future plans were sufficiently provided (explanation sufficiency).
The exchange said, "To support corporations in preparing thorough reports, we will provide preparation standards for each key inspection item through the exchange's listed disclosure submission system and offer training for practitioners and one-on-one consulting."