Regulatory Alerts2018-04-04
Added · Updated
Amendments Proposed to the Act on Corporate Governance of Financial Companies, the Enforcement Decree, and Regulation
The Financial Services Commission proposes amendments to the Act on Corporate Governance of Financial Companies, its Enforcement Decree, and the Regulation on Supervision of Corporate Governance of Financial Companies. The proposed changes adjust disqualification periods for directors and officers based on penalty severity, require board selection committees to consider professional diversity, and mandate that outside directors comprise at least two-thirds of such committees. Enhanced independence standards include a minimum two-year term for audit committee members, a maximum six-year term for full-time auditors, and restrictions on concurrent committee roles. Additionally, the proposals require the establishment of performance standards not tied to financial performance for key executives, disclosure of individual aggregate remuneration for high-paid directors and officers, and specific corporate governance disclosures in annual reports regarding board expertise and CEO succession.
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