Korea Boosts Shareholder Rights in Key Law to Support Stocks

South Korea’s ambitious plan to improve corporate governance standards got a boost after the parliament voted to approve law changes that will help protect the rights of minority shareholders.

The revisions to the commercial code include making board members legally accountable to all shareholders, instead of catering largely only to those with significant stakes — such as the founding families of the nation’s many conglomerates. Another key change is to limit the voting rights of the largest shareholders and related parties to 3% when appointing the members of an audit committee.