LS Group Chairman Koo Ja-yeol
South Korean conglomerate LS Group on Wednesday unveiled shareholder-friendly policy changes to enhance management transparency.
Under the new order, group affiliates will form standing committees to supervise and filter out any insider or suspicious business deals before they reach respective board to ensure transparent and fair management. Any large-scale business deals among sister companies and management-related changes or stock trades of board members would go through the committee.
LS Group plans to create such committee first in its listed affiliates - LS, LSIS and Gaon Cable - in the first half of this year and then steadily add to E1 and Yesco.
For LG, LSIC, and EI, an outside board director will recommend the head of a committee naming outside board members. It is usual for the chairman to co-head the committee appointing outside board directors in Korean enterprises to seat candidates favorable to the management.
Listed companies also coordinated the annual shareholders’ meetings that usually fall on the same day to help turnout and shareholders’ convenience.
LSIS holds its shareholders’ meeting on March 20, LS Cable & System Asia on 22nd, Gaon Cable on 28th, and LS on March 29th.
By Woo Je-yoon and Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]