Public companies usually have a large number of shareholders and there can be complex relationship among the interested parties, so managing the public company while protecting the interests of the minority shareholders can be difficult.

Article 542-2 through 542-13 of the Commercial Act of Korea set forth special provisions applicable to companies regarding stock options, general meeting of shareholders, appointment of directors and auditors, transactions with interested parties such as outside directors and major shareholders, audit committees and compliance guidelines. Under Article 165-2 through 165-19 of the Financial Investment Services and Capital Markets Act outlines the special provision for trading its own stocks (treasury shares), merger, issuance of stocks, and issuance below par value, and dividends for the publicly traded companies. There are other provisions that provide favorable treatment for publicly traded companies.

EHoo’s professionals can point out the differences between the requirements for publicly traded corporations and others so as to prevent violations of laws in operation of the business.