On January 29, 2020, the amendment to Article 31(3) of the Korean Commercial Code became effective, specifying what listed companies must include in its notification to shareholders when convening an annual meeting for the purpose of appointing directors and auditors (or audit committee members).

Details:

Specifically, listed companies must include in its notification the following eligibility information:

Whether any director or auditor (or audit committee members) candidate has been given a delinquency disposition under the National Tax Collection Act or Local Tax Act within five years from the date of general shareholders meeting;

Whether any company, in which any director or auditor (or audit committee members) candidate has worked within the last five years from the date of the general shareholders meeting, applied for rehabilitation or insolvency procedures as per the Debtor Rehabilitation and Bankruptcy Act; and

Any reason for disqualification to be a director or an auditor (or audit committee members), such as grounds for employment restriction, etc. (collectively, “Eligibility Information”).

Further, the amended Commercial Code requires that the above three Eligibility Information must be stated in accordance with the below table format on the meeting agenda when notifying shareholders of the general shareholders meeting for the appointment of directors, auditors, and audit committee members.

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