To allow shareholders to be better informed before voting, the FSC will mandate companies to attach their earnings and audit reports when sending out notices of shareholder meetings.

In addition, companies will have to provide comprehensive information on new board directors being put to a vote, as well as disclose the salaries of board directors in the past year, to ensure transparency.

Moreover, the FSC will require firms to give out notices of shareholder meetings four weeks prior to the meeting date, extending the term from the current two-week period.

It will also cap the number of companies that can hold shareholder meetings on a specific day, to ensure that meetings are appropriately dispersed, rather than concentrated on certain days.

The FSC will hold a meeting to collect opinions on the projected changes by next month. It will immediately take action on items that do not require legal changes, and ensure that due amendments to the Capital Markets Act are completed by the year’s end, it said.

By Sohn Ji-young (jys@heraldcorp.com)