‘Non-face-to-face’ shareholding spread… The business community is nervous about the first application of the ‘3% rule’

First on-line broadcast of Samsung Electronics’ shareholders… Review of Hyundai Motor Company and SK Hynix

Electronic voting system is’New Normal’… Amendments to the Commercial Law

(Seoul = Yonhap News) Industry Team = A new coronavirus infection (Corona 19) is changing the appearance of the general shareholders’ meeting in the business world.

As Untact (non-face-to-face) became’New Normal’, not only the electronic voting system was generalized, but also live online broadcasting is actively expanding from this year.

Along with this, as the ‘3% rule’ for the separate election of audit committee members was first applied at this year’s shareholders’ meeting according to the amendment to the commercial law that was changed last year, it is expected that companies will not be able to release tension until the end of the shareholders’ meeting.

◇’Donghak ants’ growing breath… Proliferation of electronic voting system, live online broadcasting

Samsung Electronics with 2 million shareholders[005930]Held the board of directors on the 16th and announced that it would hold a regular general shareholders’ meeting on the 17th of next month.

Samsung Electronics decided to hold an offline shareholders’ meeting at the Suwon Convention Center in Gyeonggi-do, similar to last year, at this shareholders’ meeting, as well as an online live broadcast for the first time.

Earlier, the Samsung Compliance Monitoring Committee recommended that shareholders be reinforced with shareholder-friendly management and conducted the shareholders’ meeting online in consideration of the recent Corona 19 situation, and Samsung accepted.

As a result, the industry is predicting that the participation of Samsung Electronics’ 2 million Donghak Ants will increase.

Shareholders can apply for online broadcast participation through a separate site and pre-register questions for each agenda.

On this day, Samsung Electronics also introduced in detail the electronic voting system that will be held at the Korea Securities Depository’s’Electronic Voting System’ (http://evote.ksd.or.kr) from 9 am on the 7th to 5 pm on the 16th.

Hyundai Motor Group introduced the electronic voting system last year in all 12 affiliates,[005380]It is also considering whether to run the online shareholders’ meeting at the same time.

SK Group is already SK Telecom[017670]SK hynix held an online shareholder meeting last year, and this year[000660]And SK Innovation[096770]We are considering introducing this online shareholders’ meeting.

POSCO holds a shareholders’ meeting on the 12th of next month[005490]Provincial shareholders are considering a plan to run both online and offline.

LG Group, which is holding a shareholders’ meeting at the end of March, is a member of LG Electronics to expand non-face-to-face participation.[066570]13 listed affiliates, including LG and LG Corp., will introduce the electronic voting system at the general shareholders’ meeting.

LG Chem last year[051910]And Robostar[090360]First introduced the electronic voting system, and from this March shareholders’ meeting, LG Corp., LG Electronics, and LG Display[034220], LG Innotek[011070], LG Household & Health Care[051900], LG Uplus[032640], LG International[001120] Eleven listed affiliates, including other companies, conduct electronic voting.

One relationship in the industry said, “As ESG management, which emphasizes transparency in governance along with the environment and society, has emerged as a hot topic, an atmosphere that broadly guarantees the rights of minority shareholders has been formed.” We are accelerating the introduction of non-face-to-face shareholders.”

◇ First application of ‘3% rule’… Tense business world

The main agenda at the general shareholders’ meeting of major companies this year is expected to be the appointment of inside and outside directors.

In the case of Samsung Electronics, three executive directors, including Vice Chairman Kim Ki-Nam of Device Solutions (DS) Division, which are scheduled to expire next month, Kim Hyun-seok, President of Consumer Electronics (CE) Division, and Dong-jin Ko, President of IT and Mobile (IM) Division, will be confirmed at this shareholders’ meeting.

POSCO is also planning to propose an agenda for the reappointment of Chairman Choi Jung-woo at this shareholders’ meeting.

LG Corp., the holding company of LG Group, is expected to separate the agenda from Koo Bon-jun’s division at the regular shareholders’ meeting scheduled for the 26th.

The tentatively named LG New Holdings Co., Ltd., which is separated from the subsidiary, is composed of LG International, LG Hausys, LGMA, Silicon Works, and Pantos. After passing this shareholders’ meeting, a new holding company will be launched on May 1st.

LG Electronics will deal with the agenda for the establishment of a joint venture LG Magna ePowertrain (tentative name) with Canadian automobile parts company Magna International at regular shareholders’ meetings. If the agenda is approved, LG Magna ePowertrain will be officially launched in July.

The biggest change in the shareholders’ meeting this year is the application of the amendment to the commercial law that changed last year.

Until now, when a company elected an audit committee, the director was first elected and then the audit committee member was re-elected from among the directors.

However, starting this year, at least one audit committee member must be elected separately from the directors. At this time, voting rights are granted to the largest shareholder and a specially related person at a rate of 3% when selecting an audit committee member who also serves as an outside director. .

Accordingly, companies ahead of the re-election of the audit committee are unable to release tension over the noise that may occur in the process of selecting directors.

Samsung Electronics has a separate agenda to reappoint outside director Kim Seon-wook, who served as the head of the legal affairs office this year, as a member of the audit committee.

In addition, Hyundai Motor Company, LG Electronics, LG, LG Uplus, SK Hynix, SK Innovation, SK Gas[018670], Lotte Chemical[011170]Major corporations, such as the holdings of Hyundai Heavy Industries and HHI, should also appoint at least one audit committee member this year.

The business community believes that there are few companies that will be threatened with management rights due to the issue of appointment of audit committee members.

However, companies with weak management rights are concerned that there is a possibility that companies that will be targeted by foreign speculative funds, such as the Sovereignty of SK and the Elliott of Hyundai Motors, may emerge.

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2021/02/16 16:51 sent