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Amendments to the “Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies”

The FSC amended Subparagraph 1, Paragraph 1, Article 5 of the aforementioned Regulations on February 27, 2020 by adding a new requirement that an individual shareholder intending to act as a proxy solicitor must hold at least 2 million shares issued by the financial institution. The rationale behind the amendments is as the following: (1) Financial holding companies subject to the provisions of the “Financial Holding Company Act”, banks governed by the “Banking Act”, and insurance companies regulated under the “Insurance Act” (hereinafter, “financial institutions”), hold massive amounts of capital and they have widely differing amounts of share capital. To facilitate shareholder activism and satisfy the principle of equal treatment of shareholders, the new provision is needed for better corporate governance. (2) When there is an election of directors or supervisors on the shareholder meeting agenda of a financial institution, regardless of its size of paid-in capital, individual shareholders who meet certain conditions all have the right to participate as proxy solicitors in such an election.
Visitor: 140   Update: 2020-03-06