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Reform and Implications from the UK Stewardship Code

  • DONG-A LAW REVIEW
  • 2020, (88), pp.103-128
  • DOI : 10.31839/DALR.2020.8.88.103
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law
  • Received : July 17, 2020
  • Accepted : August 11, 2020
  • Published : August 31, 2020

Hwang, Jung-Mi 1

1한국기업법연구소

Accredited

ABSTRACT

The Stewardship Code was enacted as a Principle for Responsible Investment, along with accountability for institutional investors who failed to adequately monitor the company's board of directors and management for the cause of the 2008 global financial crisis. In particular, it was introduced in the reflection that domestic institutional investors' engagement was not a desirable direction in situations where corporate owners' family(called by ‘Chaebol’) issues such as shareholders' rights and even losses led to national credibility. Since the establishment of the 「Stewardship Code」, the UK continues its revision, evaluation and certification efforts to maximize its effectiveness. The revision of the 「Stewardship Code 2020」 has great implications for extending the concept of stewardship to EGS, not limiting the target of stewardship to listed stocks, and strengthening the disclosure of institutional investors' stewardship performance reports. In order for the Korean stewardship code, which is still in the early stages of introduction, to have the right direction, it is necessary to closely analyze the policies and cases of the market where the stewardship is already actively being exercised.

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