[Asia Economy Reporter Park Sun-mi] Attention is focused on whether Lee Jae-yong, Chairman of Samsung Electronics, will be included as a registered director candidate at the upcoming Samsung Electronics annual general meeting of shareholders scheduled for one month later.
On the 14th, Samsung Electronics will decide on the date of the shareholders' meeting and the agenda at a board meeting held in the morning. The likely date for the shareholders' meeting is around the 15th of next month. Depending on the board's decision, the agenda for the shareholders' meeting is expected to be announced within this week.
The most anticipated issue is whether Chairman Lee will return as a registered director. For Chairman Lee, who is currently an unregistered executive, to return as a registered director, it must be included in the agenda of the upcoming annual shareholders' meeting and approved by the shareholders. Chairman Lee stepped down as a registered executive after completing a three-year term on October 26, 2019. He is currently an unpaid unregistered executive. Until now, he could not serve as a registered executive due to being on parole.
Chairman Lee could return as a registered director to strengthen responsible management. However, many believe there is no urgent need to hasten the transition to a registered director while legal risks have not been fully resolved. It is argued that he can sufficiently perform his role as chairman even as an unregistered executive. In fact, many owners in the business community serve as chairmen while remaining unregistered executives. For example, SK Chairman Chey Tae-won participates in management as an unregistered chairman at key affiliates such as SK Telecom, SK Hynix, and SK Innovation. CJ Chairman Lee Jae-hyun is also an unregistered executive. Hanwha Chairman Kim Seung-youn is engaged in management activities as an unregistered executive at Hanwha Corporation, Hanwha Solutions, Hanwha Construction, and others.
However, if Chairman Lee remains an unregistered executive, he may not be free from criticism that he exercises significant authority and influence in major decision-making processes while avoiding responsibility. Unregistered executives exercise management rights but have no legal liability.
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