The corporate law amendment bill shows some ambition to improve corporate governance. As a result of the bill, “director nominations by shareholders” have been amended by revoking the review power from the board of directors. In addition, the majority of the board of directors, if dissatisfied after asking the chairman of the company to call a board meeting, will have the power to call the board meeting. However, these amendments may not achieve the goal intended by them because of the lack of efficient enforcements.
Moreover, the core concepts of corporate governance are rarely touched by the bill. Examples include director disqualification and directors’ fiduciary duties, etc. We urge the government to make more efforts to improve the bill before it becomes a statute.