Strengthening the voting requirements at general shareholders' meetings when reappointing the chairman of a financial holding company... 75% approved for 3rd consecutive term

(Seoul = Yonhap News) Reporter Kang Soo-ryeon and Kim Ji-yeon = Financial authorities are pursuing a plan to gradually strengthen the requirements for voting at the executive candidate recommendation committee (appointment committee) and general shareholders' meeting as the number of consecutive terms for financial holding company chairmen increases.

According to the financial and political circles on the 2nd, the Financial Services Commission explained this plan to improve governance structure to members of the Democratic Party of Korea who are part of the National Assembly's Political Affairs Committee.

According to the improvement plan, when first appointing a chairman, the approval of more than two-thirds of the appointment committee members must be obtained. At the subsequent general shareholders' meeting, the approval must be obtained from a majority of the voting rights of shareholders present and at least one-fourth of the total number of issued shares.

For reappointment, the requirements are strengthened and the approval of more than three-quarters of the appointment committee members, more than two-thirds of the voting rights of shareholders present at the shareholders' meeting, and more than one-third of the total number of issued shares must be secured.

In the case of a third consecutive term, the requirements for the appointment committee are the same, and at least three-quarters of the voting rights of shareholders present and more than half of the total number of issued shares must be approved at the general meeting of shareholders.

Initially, the Financial Services Commission discussed a plan to legally prohibit three consecutive terms, but decided to gradually strengthen the voting requirements.

In addition, it is reported that the Chairman of the Appointment Committee, who recommended the candidate for the chairman of the financial holding company, directly explains the reason for recommending the candidate at the general meeting of shareholders, and also includes a plan to apply the accountability structure to the Chairman of the Appointment Committee.

The contents of the governance improvement plan will soon be confirmed through consultation with the party and government.