Shinhan Asset Management announced on the 8th that it has established a trustee responsibility committee to deliberate and decide on voting rights and shareholder activities.
Shinhan Management's responsibility committee is expected to deliberate on the agenda related to the responsibility of major trustees, which was previously handled by the ESG committee. The ESG committee focuses on issues related to ESG investment strategy establishment and risk management.
The new task force strengthened independence by appointing an outside director as chairman. Shinhan Management explained that it is the first time for an outside director to head the responsibility committee. The chairman of the responsibility committee is Shin Sung-kyung, an outside director who is a lawyer for the Liu partner of the law firm.
Shinhan Management explained, "It is a decision-making structure that is partially independent of the investment and sales sectors," adding, "We have established a governance system to increase the fairness and reliability of trustee responsibility activities."
Shinhan Management plans to exercise voting rights in accordance with the recently strengthened Stewardship Code (institutional investor trustee responsibility principle), manage conflicts of interest, independence of decision-making, and prepare a transparent record and disclosure system.
"As trustee responsibility activities are a key process to protect the long-term interests of customers and beneficiaries, a decision-making system with independence and transparency is important," said Lee Seok-won, CEO of Shinhan Management. "The establishment of the trustee responsibility committee is a measure to enhance fairness in voting rights and shareholder activities and to strengthen the conflict of interest management system."
"The ESG committee has reorganized itself into a company-wide ESG investment strategy meeting to strengthen its responsible investment strategy function," he said. "We will continue to establish a responsible investment system that meets global stewardship code standards and upgrade trustee responsibility activities to enhance long-term profits for customers and beneficiaries."
