Seoul: The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) were engaged in last-minute negotiations Wednesday in a bid to reach a compromise on a revision of the Commercial Act, but they still remained at odds over key provisions of the bill.
According to Yonhap News Agency, the DP has been pushing to amend the act to expand the fiduciary duty of corporate board members to all shareholders, in what many analysts say is a move to improve corporate governance. At the center of a major disagreement is a rule that would limit the voting rights of the largest shareholder in a company to 3 percent when an auditor is being selected.
Rep. Jang Dong-hyeok of the PPP said that the business community has raised concerns that the measure could allow hostile foreign capital to interfere in the management of Korean companies. Another contentious issue is a provision related to a cumulative voting system.
Rep. Kim Yong-min of the DP said the ruling party would continue negotiations with the PPP and put the revision bill of the Commercial Act to a vote at the National Assembly.