Lee Jae-yong, vice chairman of Samsung Electronics, is expected to step down as the company's registered inside director.
Samsung Electronics has decided not to hold a board meeting or an extraordinary general meeting of shareholders until Oct. 26 when Lee’s term expires.
This means Lee will not extend his term as an inside director. Lee was elected as an inside director in a temporary shareholders’ general meeting on Oct. 27, 45 days after a board meeting on Sept. 2, 2016. Under the Commerce Act, the term of a director is three years. If the term is not extended through a board meeting before Oct. 26, Lee’s term as an inside director will come to an end.
The Commercial Act stipulates that a general meeting of shareholders must be held to extend the term of an incumbent director. As a result, Samsung must notify its shareholders of the convocation of a meeting not later than Oct. 11, but Samsung has decided not to hold a general meeting.
Lee is expected to carry out his jobs as usual after being removed from the board. He is scheduled to face the first trial of a remanded case in connection with the Choi Soon-sil scandal on Oct. 25.