By Park Jin-hai
Hyundai Motor said Monday that it has decided to establish an independent committee through the board of directors to promote shareholders’ rights.
The Corporate Governance and Communication Committee, comprised of four outside directors, is a follow-up measure to its March 13 general shareholders’ meeting, where shareholders requested that Hyundai come up with measures to protect their rights.
“The committee will represent shareholders’ rights in major business issues such as mergers and acquisitions and acquiring major assets,” the company said in a statement.
The board of directors’ meeting, Thursday, gave the green light for the establishment of the independent committee.
“The committee’s outside director members will operate autonomously from the internal directors who are in charge of management of the company,” a company official said.
Hyundai will place one committee member in charge of overseeing shareholder rights as an additional protective measure.
The committee will annually release information on its activities through various channels.
The outside director in charge of overseeing shareholder rights will actively participate in activities such as investor relations events and Non-Deal Road shows as a voice for shareholders.
Apart from the committee, the board will expand regular communication channels with shareholders.
The audit report that Hyundai publically announces a week prior to general meetings, will now be available earlier.
In the meantime, decisions like the selection of its outside accounting firm will also be reported directly to shareholders during the shareholders’ meeting.
It will also provide English translations for overseas investors as well.
“The establishment of the committee which will only be comprised of outside directors within the board of directors shows Hyundai’s commitment to becoming more shareholder-friendly,” the company official said.
The controversial 10.5 trillion won deal it made in September to purchase the KEPCO site in southern Seoul invited shareholders’ criticism, while the company’s commitment to protecting shareholders’ values has been questioned.
At its shareholders’ meeting in March, Hyundai Motor CEO Kim Choong-ho said the company has been seeking to better inform shareholders of the company’s decision-making processes through public disclosures.