Control Disputes Show Why Majority Stakes May Not Clear the CEO Barrier

Attorney Han Tae-young of Barun Law wrote in mk.co.kr’s “Barun Compliance Report” that holding a majority stake in a company does not automatically mean securing management control. The article highlights a common misunderstanding in corporate control disputes: even shareholders with 50% or a majority stake can face an institutional barrier in the form of the representative director. In such disputes, ownership percentage alone is not enough, because the representative director position and the company’s decision-making structure also affect actual control. The report’s message is that companies and shareholders need to review governance not only by shareholding ratios but also through a compliance lens when preventing or responding to control conflicts. Source: mk.co.kr