Korea Corporate Governance Forum hosted a seminar on ‘Succession and Governance’ on May 18, 2022

Yvonne Park, President of FleishmanHillard Korea, presented ‘Family Enterprise Governance and Succession management’ at a seminar held by the Korea Corporate Governance Forum on May 18, 2022. The forum panelists suggested the following to reduce the governance risks and prevent infringements of minority shareholders’ rights in the process of succession: decrease the rate for gift and inheritance tax, strengthen the rights and responsibilities of the board of directors, and change the method of calculation for merger ratio.

Regarding the successions in family businesses, Park mentioned that “it is necessary to recognize the influence of family enterprises” and “succession is not an event but a process.” Furthermore, she recommends establishing a system of family governance for family enterprises. Especially, she suggested changes in the perception of business succession, a system of family governance that respects fairness among shareholders for both the family members and the general shareholders, securing transparency in the accounting and governance system, and communication that can enhance the understanding of the positive impact behind the succession of family business to the related stakeholders.

For more information about the seminar, you can refer to the article in News 1.

To read the article :  Korea Corporate Governance Forum on Succession & Governance seminar urged Tax reform