Nat'l Assembly set to vote on revised Commercial Act after main opposition's filibuster
Main opposition People Power Party's Rep. Cho Bae-sook speaks during a filibuster opposing a revision to the Commercial Act at the National Assembly in Seoul, Sunday. Yonhap
The National Assembly was set to vote on a revision to the Commercial Act aimed at better protecting minority shareholders Monday when the main opposition's filibuster to block it ends.
The latest revision mandates the adoption of a cumulative voting system at large listed companies with assets over 2 trillion won ($1.45 billion) and expands the separate nomination of audit committee members from one to at least two.
Such provisions were excluded from an earlier Commercial Act revision passed by the National Assembly last month with bipartisan support.
The main opposition People Power Party (PPP) launched the filibuster Sunday morning, which was set to end after 24 hours, allowing for the National Assembly to vote on the revision.
The PPP has opposed the revision, voicing concerns over inefficient corporate governance and a negative impact on the competitiveness of companies.
Cumulative voting allows shareholders to cast multiple votes proportionate to their shareholding when electing board members, helping to better protect the interests of small shareholders.
The latest revision comes as President Lee Jae Myung has pledged to improve corporate governance as part of efforts to eliminate the so-called Korea Discount, which refers to undervalued local stocks.
In early July, the Assembly passed a revision to the Commercial Act that would expand the fiduciary duty of corporate board members to all shareholders.