Hyundai Motor has said it would set up an independent committee within the company’s board of directors to improve decision-making by reflecting minority shareholders’ rights.
The panel would include four of the carmaker’s existing outside directors, Hyundai said in a statement e-mailed to Bloomberg. The company said it would also implement measures to improve communication with shareholders such as publishing audit reports earlier.
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Bloomberg noted the decision followed criticism by investors and corporate governance groups that Hyundai and its affiliates undermined shareholder value by paying triple the assessed value for a plot of real estate last year in Seoul. Hyundai has bought back shares and increased its dividend payout to assuage investors.
The committee “shows Hyundai’s commitment to providing a more friendly environment for shareholders,” Hyundai said in the statement. “Hyundai will continually strive to promote shareholder rights.”
