Listed companies with assets of 2 trillion won or more must hold electronic shareholders' meetings starting next year. Domestic and overseas shareholders can attend the electronic shareholders' meeting via the internet and exercise their shareholder rights.
The Ministry of Justice said on the 28th that, under the amended Commercial Act mandating electronic shareholders' meetings, it has given advance notice of legislation for a revised enforcement decree of the Commercial Act that sets out detailed procedures.
Until now, shareholders' meetings were concentrated in specific times and regions. As a result, many shareholders could not attend due to constraints of time and distance. When electronic shareholders' meetings are held, shareholders will be able to exercise their rights more easily.
Considering that this is the initial phase of introducing electronic shareholders' meetings, the Ministry of Justice required listed companies with total assets of 2 trillion won or more to hold them. As of the end of last year, there were 210 listed companies with total assets of 2 trillion won or more.
The Ministry of Justice, in cooperation with the Korea Securities Depository (KSD), plans to conduct preparatory work, including a mock electronic shareholders' meeting in the second half of this year.
Minister Jung Sung-ho of the Ministry of Justice said, "An environment has been created in which domestic and overseas shareholders can exercise their rights without the barriers of distance and time," and added, "The Ministry of Justice will work to enhance accessibility for shareholder participation so that corporations and shareholders can communicate closely."