South Korean conglomerate SK Group has enacted a corporate governance charter in a bid to enhance transparency and disclosure for its shareholders.
SK Holdings Co. said Monday it will be the first holding company in the country to establish a corporate governance charter, stipulating shareholder rights and responsibilities of the board and supervisory committee.
The company said it has also launched two new positions in support of the charter.
The newly formed position of senior outside director will act as a representative of external members to ensure they serve a proper check-and-balance function as a fully-independent body. This is expected to add further weight to the governance committee, an entity formed in 2016 consisting of only outside directors to bolster shareholder rights and uphold an advanced governance framework.
A shareholder representative would be chosen among the external board members to strengthen communication with shareholders and other stakeholders and to protect their interests.
The charter would soon be made public on SK Holdings’ website. It would also be made available in English.
“We will continue making efforts to serve our shareholders and the society in line with international standards to become a global investment holding company,” said a company official. “This charter is the display of our commitment to improved communication with our shareholders.”
Earlier this year, SK Group arranged shareholder meetings of its major affiliates including SK Hynix, SK Innovation and SK Telecom on separate days to allow better shareholder turnout.
By Kang Doo-soon and Kim Hyo-jin
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