Right of Shareholder
Shareholders own the company, controlling it by appointing the board of directors to act as their representatives. Shareholders are eligible to make decisions on any significant corporate changes. Therefore, the company should encourage shareholders to exercise their rights.
The Company undertakes to encourage and facilitate the shareholders to exercise their rights as follows:
- Basic shareholder rights include the right to (1) buy, sell, or transfer shares (2) share in the profit of the company (3) obtain relevant and adequate information on the company in a timely manner and on a regular basis (4) participate and vote in shareholder meetings to elect or remove members of the board, appoint the external auditor, and make decisions on any transactions that affects the company, such as dividend payment, amendments to the company’s articles of association or bylaws, capital increases or decreases, or the approval of extraordinary transactions.
- Shareholders should be fully informed of the criteria and procedures governing shareholder meetings. Sufficient information regarding the issues to be decided in each agenda item should be provided in advance of the meeting. Shareholders should be able to query directors both in the meeting and by sending their questions in advance. They should also be allowed to propose agenda items and vote by proxy.
- The board of directors must recognize shareholders rights and avoid any action that violates those rights.