South Korea’s Hyundai Motor Co, the world’s fifth largest automaker when taken together with affiliate Kia Motors, has agreed to create an independent shareholder-rights panel.
The committee will work inside the company’s board of directors in a bid to show some transparency across the decision-making process by also taking into account the minority shareholders’ rights. The newly created panel would be formed out of four of the firm’s existing outside directors, according to a statement issued recently by the South Korean automaker Hyundai. The carmaker added it would also move to improve communication with shareholders by introducing new management measures, such as publishing audit reports faster than it used to. The committee “shows Hyundai’s commitment to providing a more friendly environment for shareholders,” commented the South Korean automaker in the statement. “Hyundai will continually strive to promote shareholder rights.” The carmaker has been hit by a few slower quarters, with profits dwindling on increased pressure from rivals both at home and in crucial markets – the US and China.
In the United States the carmaker’s traditional strength – sedans – have fallen out of favor with customers wanting to take advantage of the recent drop in gasoline prices and bulking to acquire sport utility vehicles and pickup trucks. In China, the world’s largest auto market, Ford has managed to surpass the South Korean rival for the first time during the first quarter, sitting now right next to the top three sales positions. The decision to install the independent committee also comes as shareholders criticized the company’s decision last year to buy a praised plot in Seoul to construct its next headquarters.