Enter 2021.01.21 12:00
The company’s regular shareholders’ meeting can now be held regardless of the social distancing of the quarantine authorities and the number of meetings and events. However, the quarantine regulations set by the quarantine authorities, such as keeping a sufficient distance between seats and making a list of participants, must be strictly observed.
Administrative sanctions such as fines are exempted for companies whose financial statements or external audits have been delayed due to the spread of coronavirus, and the submission of business reports, etc.
–
–
In the support plan, the government decided to allow the inevitably gathering of a large number of people at the general shareholders’ meeting under the conditions of observing quarantine measures. Currently, the quarantine authorities have set the social distance between Seoul, Gyeonggi, Incheon, Busan, and Jinju in 2.5 steps to prevent more than 50 people from gathering, and in other regions, not more than 100 people gathered in the second step. Allow them to gather.
According to the Commercial Act, corporations settled in December must hold a regular shareholders’ meeting by the end of March to finalize their financial statements. If the financial statements are not confirmed, dividends are impossible. Also, directors and auditors cannot be appointed. There are 2351 listed companies that must hold a general shareholders’ meeting by the end of March.
However, the company holding the shareholders’ meeting must thoroughly observe the government’s quarantine rules for assemblies and gatherings, such as keeping a sufficient distance between the seats of participants and making a list of participants. In addition, it is necessary to actively induce shareholders to use electronic voting, and to actively encourage the exercise of voting rights through an electronic power of attorney.
Administrative sanctions are also exempted for companies that submit financial statements, audit reports, and business reports inevitably late due to the coronavirus outbreak. According to the current Capital Markets Act and the External Audit Act, places where late submissions of financial statements, etc. are subject to administrative sanctions such as fines. In addition, listed companies are subject to market measures such as designation of management items and delisting.
The government decided to avoid imposing fines for companies that fail to keep financial statements and audit reports at their headquarters before the regular shareholders’ meeting due to delayed settlement due to the spread of the coronavirus. According to the Commercial Act, financial statements, etc., are placed at the headquarters one week before the regular shareholders’ meeting, and a fine for negligence is imposed if this is not observed.
–
– .
