Seoul: The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) have reached a compromise on the revision of the Commercial Act. This development has raised expectations that the revised bill could be approved at the National Assembly this week.
According to Yonhap News Agency, the DP has been advocating for amendments to the act to broaden the fiduciary duty of corporate board members to include all shareholders, a move seen by many analysts as an effort to enhance corporate governance. However, the PPP had previously opposed a regulation that would limit the voting rights of a company's largest shareholder.
The main point of contention between the rival parties was the rule that would restrict the voting rights of the largest shareholder to 3 percent during the selection of an auditor. After discussions, both parties agreed to put the bill to a vote following amendments to this rule.
Additionally, the parties have consented to conduct a public hearing to discuss other controversial aspects of the revised bill. This includes a provision related to a cumulative voting system, which remains a topic of debate.
Rep. Jang Dong-hyeok of the PPP expressed that the agreement on the revised bill sends a "positive message" to both the capital and stock markets, indicating a potential boost in confidence among investors.