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Hyundai Motor to intensify efforts to improve shareholder interests

All Headlines 10:55 March 11, 2016

SEOUL, March 11 (Yonhap) -- Hyundai Motor Co., South Korea's largest carmaker, said Friday that it will intensify efforts to enhance the interests of its shareholders this year through transparent and responsible management.

The pledge came at an annual shareholder meeting held earlier in the day at its headquarters located in southern Seoul. Hyundai Motor received approval for its 2015 financial statements and other key business-related issues from its shareholders.

During the meeting, Hyundai Motor announced its so-called corporate governance charter, a move aimed at providing a "comprehensive" and "transparent" disclosure of its governance. It was made public online both in Korean and English.

"We decided to enact the charter to raise the trust among our shareholders, customers and other stakeholders and also to use it as ground to keep our corporate activities on par with a global company," the company said in a press release.

"All company executives and staff will actively work together going forward to make our transparent management and shareholder-friendly policy take root in line with the charter," it added.

The charter consists of five categories -- rights of shareholders, board of directors, audit, stakeholders and disclosure -- elaborating on how each of them performs, is constituted and managed.

In particular, the board of directors category explains in detail the operations of the transparency committee that the company launched last year to enhance communication with shareholders in a manner to improve their benefits.

The transparency committee formed at the request of investors is comprised of four outside directors to guarantee independence. It is required to prioritize the interest of shareholders in making major corporate decisions.

The committee was launched amid mounting complaints that shareholders' opinions were not well reflected in the decision to purchase a site for the new headquarters in 2014 at a price deemed to be "excessive" in the market.

kokobj@yna.co.kr
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