Hyundai Motor Announces Corporate Governance Charter to Promote Shareholder Rights
March 11, 2016 - Hyundai Motor officially announced the ‘Corporate Governance Charter’ at the 48th Annual General Meeting of Shareholders today. The charter is part of Hyundai Motor’s efforts to enhance transparent business management and promote shareholder rights. During the shareholders’ meeting, Hyundai Motor also presented activities and future plans of the Corporate Governance and Communication Committee.
- Hyundai Motor establishes corporate governance charter to enhance transparent business management
- Activities and future plans of the Corporate Governance and Communication Committee were shared at the shareholders’ meeting
- Hyundai Motor strives to build a more shareholder-friendly environment by increasing transparency and shareholder returns
The Corporate Governance Charter will enhance transparent business management by ensuring professionalism and independence of the Board of Directors. The charter illustrates Hyundai Motor’s commitment to promoting rights and interests of shareholders.
More specifically, the charter is composed of five sections including Shareholder, Board of Directors, Audit, Stakeholder and Disclosure. Each section articulates specific details such as composition, operation, roles and other details.
In particular, the Board of Directors section specifies the composition, roles, and direction of the Corporate Governance and Communication Committee, which was established last April within the Board of Directors as an independent decision-making committee composed of four outside directors to promote shareholder rights.
According to the charter, the committee will review major management issues related to protecting shareholder rights such as shareholder returns and dividends, and continuously communicate with shareholders.
Moreover, the annual activities of Corporate Governance and Communication Committee will be disclosed in various channels such as Hyundai Motor’s Sustainability Report to allow access to all shareholders.
Hyundai Motor established the Corporate Governance Charter to raise credibility among shareholders and utilize it as the basis of its business management activities. Going forward, employees will concentrate efforts to root shareholder-friendly policies and transparent management based on the founding principles of the charter.
The Corporate Governance and Communication Committee has been conducting activities to enhance communication by explaining the purpose and role of the committee and listening to opinions of stakeholders. In particular, Hyundai Motor accompanied Dr. Youjae Yi, a Professor of Seoul National University and a committee member in charge of promoting shareholder-friendly policies, to hold the first ‘Non-Deal Roadshow (NDR)’ with 25 institutional investors in Europe and Asia. Moreover, Hyundai Motor has visited leading providers of corporate governance solutions such as ISS (Institutional Shareholder Services) to gather ideas on ensuring professionalism and independence of the Board of Directors.
These activities are also being reflected in major management issues. Hyundai Motor has decided to pay out dividends of 4,000 KRW which includes Hyundai Motor’s interim dividend of 1,000 KRW. This is a 33.3% increase compared to last year. Moreover, the audit report which was disclosed a week before the shareholders’ meeting has been disclosed two weeks before starting from this year. Issues regarding the appointment of external audits will be directly reported at the shareholders’ meeting to provide information in a swift and transparent manner.
Starting from this year, Corporate Governance and Communication Committee will strive to build a friendly environment for shareholders in order to meet global standards. The committee plans to accelerate efforts in protecting shareholder rights and interests by holding more meetings with shareholders, regularly inviting specialists for education sessions, disclosing activities in various channels, minimizing the time difference in disclosing Korean and English materials and actively reflecting shareholders’ opinions in decision-making processes.
Professor Youjae Yi presented the committee’s activities and future plans at the shareholders’ meeting. “The committee will focus on building a shareholder-friendly environment that meets global standards by gradually raising shareholder returns, enhancing communication among shareholders, increasing transparency and strengthening professionalism,” said Professor Yi.
The contents of Corporate Governance Charter were established at the Board of Directors meeting held on February. The charter will also be posted on the Hyundai Motor Korean (http://pr.hyundai.com) and English (http://worldwide.hyundai.com) websites.