earticle

영어

The Commerce Code and the Securities Exchange Law have introduced the audit committee which has been developed in American corporates. This committee may be a committee of the board of directors, composed exclusively of directors more than 3, and more than two thirds of the members must be outside-directors. The audit committee should supervise the corporate management by the managing directors. Therefore the directors composed the audit committee must be independent of managing directors, and be skilled or experienced in business and audit. But Korean statutes include many problems that obstruct strict supervisement on management. For example the audit committee may be composed of inside directors who would be under the influence of managing directors, and many outside directors used to be usually recommended by managing directors. Under this structure it is worried whether the audit committee would supervise efficently corporate management or not. In order to strengthen the supervision functions of the audit committee in managing the corporation, the audit committee should be only composed of outside directors, and the members should be independent of the managing directors. In the election of outside directors the qualifications must be restricted than ever and cumulative voting must be adopted. And under the audit committee it must be established the inside auditor that audit the business activities and books of account. Furthermore it is desirable that obligated corporations registered at the Korea Stock Exchange have establish the audit committee.