The electronic voting system allows investors to exercise voting rights online without attending the general meeting of shareholders. It was adopted in 2010 to remove obstacles to participating in shareholders meetings which are often concentrated in specific areas and certain dates.
The electronic proxy system allows proxy solicitors such as issuers upload the proxy form and reference documents online, after which shareholders can grant proxies through authorized digital signatures.
Procedure for using electronic voting and proxy system
- ① Issuers
- The issuer adopts the electronic voting system through a resolution of the board of directors, and enters into a contract with KSD for electronic voting and proxy management.
- ② Issuers
- The issuer submits an application for using the electronic voting and proxy system the e-voting website (http://evote.ksd.or.kr), and registers the shareholders' list, agendas, reference materials, and voting rights restrictions, etc.
- ③ KSD
- KSD provides shareholders with information such as the schedule of general meetings, agendas, etc.
- ④ Shareholders
- By logging on the system (http://evote.ksd.or.kr), shareholders can exercise electronic voting rights and grant proxies using authorized electronic signatures from 10 days to one day before the general meeting date.
- ⑤ KSD
- KSD notifies the issuer of the result of electronic voting and proxy exercise one day before the general meeting.
- ⑥ Issuers
- The results of the electronic voting and proxy exercise are registered in the system.
- ⑦ Shareholders
- Shareholders can view the results of the general meeting submitted by the issuing company.
Benefits of electronic voting and proxy system
Using the electronic voting and proxy system improves rights exercising for shareholders and enhances the corporate image by prioritizing shareholders. Other benefits are the computerization of general meeting management tasks and reduction of proxy issuance costs.
Shareholders can exercise the voting rights online without attending general meeting in person, which has the effect of strengthening shareholder rights.
* Abolition of shadow voting postponed at the request of issuers: Revision to the Capital Markets Act (Dec. 2014)
allows issuing companies who adopt the electronic voting system and issue proxy solicitation to all shareholders
to utilize shadow voting until the end of 2017.