All proposals for Kumho Petrochemical’s shareholders’ meeting were approved.
All shareholders’ proposals for Park Chul-wan are opposed
ISS, the world’s largest voting rights consultant, voted in favor of all the agendas presented by the company ahead of the general shareholders’ meeting of Kumho Petrochemical on the 26th. On the other hand, he opposed the proposal for the appointment of executive director Park Chul-wan, who is having a management dispute with Kumho Petrochemical Chairman Park Chan-gu.
According to Kumho Petrochemical on the 14th, ISS agreed to all issues that were controversial, including △ 4200 won of common stock and 4,250 won of preferred stock per share, △ appointment of inside director Baek Jong-hoon △ appointment of outside directors including former Constitutional Judge Lee Jung-mi.
In the report, ISS explained the reasons for favor, saying, “The amendment of the articles of association proposed by Kumho Petrochemical and the agenda for candidates for the board of directors will advance the company’s governance structure in a better direction in the long term.”
He recommended opposition to the agenda proposed by Park’s 11,000 won per share dividend and the agenda of electing himself as an executive director. The dividend plan analyzed that “when the market environment is difficult, it can put a financial burden on the company.” Regarding the agenda for Park’s appointment as an executive director, he explained that “mostly, it is radical and has insufficient persuasive power.”
ISS also evaluated the financial statements and dividend agenda as “the total shareholder return (TSR) and profit-generating ability of Kumho Petrochemical is higher than that of the same industry.”
An official from Kumho Petrochemical said, “As the ISS, which is in charge of advising institutional investors and foreign investors in exercising voting rights, supports the company’s proposal, it will be beneficial in passing the agenda in the confrontation of the shareholders’ meeting.”
On the 12th, Kumho Petrochemical criticized Park’s high dividend bill through the announcement of’a statement of opinion on the solicitation of voting rights by proxy. The company said, “The dividend according to the shareholders’ proposal from Park’s total is 30 billion billion won, which is three times the company’s 2017-2019 total dividend.” It has a significant negative impact on the mid- to long-term development of the company,” he pointed out.
Reporter Kang Kyung-min [email protected]
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