South Korea’s Hyundai Motor Group will ask its shareholders to recommend candidates for a board director in charge of enhancing their rights.
Each affiliate of the group will receive recommendations from shareholders to pick an outside director who will speak for shareholders during board meetings and governance briefing sessions among members of the group’s transparent management committee, an independent decision-making body consisting of outside directors.
The group currently picks the person through a vote.
It will first post an official announcement for outside director appointment on its website and establish an advisory panel that draws up a short list. Once outside directors are appointed after shareholders’ meeting, the transparent management committee will name a person who will be in charge of preserving rights of shareholders after receiving recommendations.
The advisory panel will be comprised of three to five experts in governance at home and abroad. The group will set up the panel by referring to opinions from institutional investors to enhance transparency.
Shares of Hyundai Motor closed Thursday down 1.59 percent at 155,000 won.
By Kim Jung-hwan and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]