Seoul: The National Assembly has approved a significant revision to the Commercial Act aimed at expanding the duties of corporate directors to include not just the company but also its shareholders. The bill passed during a plenary session with a vote count of 184 in favor and 91 against.
According to Yonhap News Agency, the amendment broadens the scope of directors' obligations, mandating that they act in good faith towards both the company and its shareholders. This shift marks a notable change from the previous requirement, which focused solely on the directors' duty to the company.
Despite the bill's passage, lawmakers from the ruling People Power Party (PPP) expressed concerns regarding potential business uncertainties and increased legal costs that could arise from the new provisions. As a result, many PPP members either dissented or abstained from voting.
In response to the bill's approval, the PPP intends to request that acting President Choi Sang-mok exercise his veto rights. Acting President Choi now faces a 15-day period to decide whether to send the bill back to the National Assembly for reconsideration or proceed with its enactment. If enacted, the amendment will become effective one year after its official promulgation.