Dividends company’s proposal of 4200 won confirmed… internal and external directors appointed as personnel of the company
‘Second Management Rights Dispute’ Remains Embers…Park Chul-Wan, “Beginning, Not the End”
[서울=뉴스핌] Reporter Yoonae Lee = The dispute over the management rights of Kumho Petrochemical was settled with the victory of Chairman Park Chan-koo. The company’s agenda, including dividends and the appointment of internal and external directors, was also approved by Chairman Park, and his nephew, Managing Director Park Chul-wan, also failed to enter the executive director. As a result of the shareholders’ meeting, the’nephew’s dilemma’ has ended, but the embers of the’second management rights dispute’ seem to remain.
On the 26th, Kumho Petrochemical held a regular shareholders’ meeting at Signature Tower in Jung-gu, Seoul. On this day, 80.2% (2056 persons) of the total number of stocks with voting rights, including delegation of agents, attended.
Park Cheol-wan’s entry into the executive director, which was an interest in the US, was abandoned. Park’s proposal for the appointment of an executive director also voted 52.7%, more than half of the shareholders present, but Baek Jong-hoon, the executive director of the sales division recommended by the company, voted 64.0%, and Baek was appointed.
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| Park Chan-gu, Chairman of Kumho Petrochemical (left) and Managing Director Park Chul-wan [사진=금호석유화학] |
Dong-joon Moon, CEO of Kumho Petrochemical, who served as the chairman of the shareholders’ meeting on this day, explained, “We agreed with the shareholders’ proposal to pass only one agenda that received more votes if both agendas met the requirements of the common resolution.”
The dividend proposal, which has attracted attention, was also approved by the company’s 4200 won per common share (4,000 won for the majority shareholder) and 4250 won for preferred stock, with a 64.4% approval rate. The 11,000 won per share of common stock and 1050 won of preferred stock proposed by Managing Director Park were rejected with a 35.6% approval rate.
For some amendments to the articles of incorporation with the main idea of the separation of the CEO and the chairman of the board of directors, both the management and managing director Park’s proposals were rejected.
The company’s agenda had a 55.8% approval rate, and Park’s agenda had a 44.9% approval rate. According to Kumho Petrochemical’s side, the amendment to the articles of incorporation is a special resolution, and is approved only when at least one-third of the total number of shares attends and two-thirds (66.6%) of the participating shareholders approve.
The agenda for establishing an internal committee of the board of directors was passed by the company. The company’s proposal to set up an ESG committee and an internal transaction committee within the board of directors was approved with a 70% approval rate. On the other hand, the approval rate for the’Compensation Committee and Internal Transaction Committee’ proposed by Park’s side was rejected at 30.6%.
As for the appointment of an outside director to become a member of the Audit Committee, Hwang Lee-seok, a professor at Seoul National University Business School, recommended by the company was elected with a 69.3% approval rate. Lee Byung-nam, CEO of Boston Consulting Group Korea Office, recommended by Park, was rejected with 30.5% of the votes.
All of the outside directors were also elected from those suggested by the company. While the company’s chairing professor Do-sung Choi (68.4% approval rate), former Constitutional Judge Lee Jeong-mi (67.0%), and Seoul National University School of Public Administration Professor Park Soon-ae (74.0%) were appointed, while attorney Min John K (32.2%) recommended by Park And Cho Yong-beom, the head of Facebook Southeast Asia (25.4%), and Choi Jeong-hyun, a professor in the Department of Environmental Engineering, Ewha Womans University College of Engineering (28.1%) were rejected.
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| [서울=뉴스핌] Reporter Baek Hyuk = Shareholders are attending the 44th General Shareholders’ Meeting held at Kumho Petrochemical in Jung-gu, Seoul on the morning of the 26th. 2021.03.26 [email protected] |
The industry believes that the’nephew’s dilemma’ has ended as a result of the shareholders’ meeting, but the spark of the second management rights dispute still remains.
Managing Director Park said, “It’s just the beginning, not the end,” through a statement right after the shareholders’ meeting.
“Although I was unfortunately frustrated to enter the board of directors, I deeply appreciate all the shareholders who sympathized with and supported my specific plans that I have sincerely proposed to enhance corporate and shareholder value.” “We will do our responsibilities as the largest shareholder to correct the non-friendly shareholder return policy such as long-term holdings and under-dividends compared to the same industry.”
Meanwhile, the shareholders’ meeting was scheduled to be held at 9 o’clock on this day, but the process of checking valid voting rights was delayed and it opened around 11:40.