Hyundai Motor Group has decided to select a director representing shareholders out of candidates recommended by shareholders, seeking to boost shareholder’s rights and interest, the group said Thursday.

Under the new system, stockholders here and overseas can recommend candidates through a website to the board dedicated to transparent management.

Previously, an outside director in the board responsible for transparent management was chosen to represent shareholders, Hyundai Motor said.

The nominated director will be in charge of speaking up for shareholders’ interest; communicating between the board of directors and shareholders; and participating in non-deal roadshows held for investors here and abroad.

“Along with the new nomination system, Hyundai Motor Group will continually make efforts to boost communication with shareholders and enhance transparency in each company,” Hyundai Motor Group said in a statement.

The transparent management board is an independent decision making group within the board of directors is comprised of outside directors from each Hyundai affiliate.

To prevent unfair selection, an advisory panel will be formed of three to five governance experts from academia, an organization that specializes in governance and investment organizations here and overseas, the company said.

After reviewing legal qualification standards and expertise, the panel will narrow down up to five viable candidates for final selection.

A nominee will be finalized upon approval by shareholders at the shareholder’s meeting.

Starting with Hyundai Glovis, the logistics unit under Hyundai Motor Group, which has to elect a director representing shareholders’ rights next month, other Hyundai affiliates will also implement the new system.

Hyundai and Kia will practice the system in 2019, when the current outside director‘s term ends, and Hyundai Mobis is set to begin in 2020.

By Kim Bo-gyung (lisakim425@heraldcorp.com)