Acting president vetoes bill expanding corporate directors' fiduciary duty to include shareholders

Acting President Han Duck-soo speaks during a Cabinet meeting in Seoul, April 1. Yonhap Acting President Han Duck-soo on Tuesday vetoed an opposition-led bill expanding the fiduciary duty of corporate directors from solely the "company" to both the "company and its shareholders." The amendment to the Commercial Act, which was passed by the opposition-controlled National Assembly last month, was vetoed by Han at a Cabinet meeting and will be sent back to parliament for a revote.

In addition to expanding corporate directors' fiduciary duties, the bill mandates the adoption of electronic shareholder meetings for listed companies. "I deeply agree with the basic spirit of the bill," Han said at the meeting. "However, given the large influence this bill can have on the business environment and competitiveness of not only big companies, but the majority of companies, including small and medium-sized enterprises, I determined there was a need to find an alternative solution that minimizes the side effects through more in-depth discussions, and following serious reflection, intend to demand the National Assembly's reconsideration.



" (Yonhap).