184 in Favor, 91 Against, 4 Abstentions
Ruling Party: "Democratic Party is Destroying Entrepreneurial Spirit"
The amendment to the Commercial Act, which expands the duty of loyalty of directors to include all shareholders, passed the National Assembly plenary session on the 13th.
On that day, the National Assembly announced that the partial amendment to the Commercial Act was approved in the plenary session with 184 votes in favor, 91 against, and 4 abstentions out of 279 members present.
The People Power Party opposed the amendment, arguing that it infringes on corporate autonomy and could significantly hinder management activities such as investment, but it was passed in the plenary session led by the opposition party.
The core of the Commercial Act amendment passed that day is expanding the duty of loyalty of directors (Article 382-3 of the Commercial Act) from the existing 'company' to 'company and shareholders.' It also includes provisions for establishing the basis for electronic general meetings of shareholders for listed companies.
The ruling party stated that it intends to immediately recommend that Choi Sang-mok, Acting Prime Minister and Minister of Strategy and Finance, exercise the right to request a reconsideration (veto) regarding the amendment to the Commercial Act passed by the National Assembly plenary session.
Kwon Young-se, Emergency Response Committee Chairman of the People Power Party, said, "The Democratic Party is trying to destroy the entrepreneurial spirit of the Republic of Korea," and added, "We will immediately recommend the exercise of the right to request reconsideration to protect our companies."
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