Minority Shareholders Win One

The Seoul High Court ruled Tuesday that resolutions made at general meetings of shareholders without any minority shareholders present will not be recognized as legal.

The court's ruling came in a case in which it decided in favor of the plaintiff, identified only as Mr. Kim. In that case the court said Kookmin Bank's decision to hand out stock-options to its executives was unjust because its general meeting of shareholders did not include the company's minority shareholders.

"We recognize the fact that Kookmin Bank failed to fully notify its minority stockholders after changing the date and location of its general meeting of shareholders," the court said in its decision. The court added that the company should have guaranteed the rights of its minority shareholders by abiding by procedures.

Officials at Kookmin Bank said the bank will appeal.