Government's Move Risks Causing Property Damage to People
The business community is reacting strongly against the government's move to transfer the National Pension Service's right to file shareholder derivative suits to an independent body responsible for acting out a stewardship role over listed companies.
Major business organizations are reportedly considering requesting the Board of Audit and Inspection (BAI) to look into the matter and filing for a court injunction to halt the government’s move, which has, in their views, no legal grounds and risks causing property damage to the people. They have begun to take counsel from law firms on the issue.
The Ministry of Health and Welfare is trying to change the main body of decision on NPS's shareholder derivative action from the current Fund Management Committee to the independent committee by revising the guideline on it.
Business organizations are planning to request the BAI to conduct an audit if the revision is approved by the Fund Management Committee at a meeting scheduled for end-February. They believe that if the committee approve the revision, it constitutes an act that exceeds its authority.
They are also considering taking legal action, including filing for court injunctions, if the independent body for stewardship actually files shareholder derivative suits. They have requested law firms to look into on the nature and authority of the independent body.
The Ministry of Health and Welfare is belatedly collecting the opinions of business organizations. Yang Sung-il, the ministry's first vice minister, held an emergency meeting with vice chairmen of six major business organizations at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on Jan. 20.