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A Study on the improvement in the system of outside director

  • Journal of Regulation Studies
  • 2004, 13(1), pp.167-198
  • Publisher : 한국규제학회
  • Research Area : Social Science > Public Administration

김성은 1 정기식 1

1창원대학교

Candidate

ABSTRACT

The outside director system was introduced to overcome the economic crisis of Korea in 1997. The outside directors serve as components of board of directors with expert knowledge, experiences and potential power. But they, with independent position, do not take part in managerial practice. It is necessary to cultivate much more outside directors with expert knowledge and independency to develope the outside director system in korea. It must be considered to make utilize of ex-CEO's professionality and also essential to nominate outside director who experienced in foreign country, advanced in outside director system. The outside director necessarily has full information about the business plan and managerial surroundings for the company to accomplish supervising role effectively. If wants, outside director must be also guaranteed to the right to information to have the other information offered by company. The assignment of role is required among outside directors, small amount stockholders and institution investors. When small amount stockholders excise representative suit right, stockholder suggestion right, a claim for displacement of board-auditor, and institution investors carry out advice and managerial supervision actively, the governance corporate structure of company for us to pursuing will be improved.

Citation status

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