Young Poong resolved to distribute 0.04 shares per share as dividends at its regular shareholders' meeting. Accordingly, Young Poong noted that the reciprocal shareholding relationship with Sun Metal Holdings (SMH), a foreign subsidiary of Korea Zinc, has been dissolved, and asserted that exercising voting rights at Korea Zinc's shareholders' meeting has become possible.
Young Poong stated in a press release after finishing the regular shareholders' meeting on the 27th that the proposal for a stock dividend of 0.04 shares per share was approved. It added that SMH's equity stake in Young Poong fell below 10%, thereby dissolving the reciprocal shareholding relationship, and that the restrictions on voting rights for Young Poong, claimed by Chairman Choi Yoon-bum at the upcoming regular shareholders' meeting of Korea Zinc on the 28th, would no longer apply.
Because SMH held more than 10% of Young Poong's shares, Young Poong was unable to exercise voting rights on Korea Zinc's stock due to the reciprocal shareholding restrictions in corporate law.
According to Young Poong, with the issuance of 68,805 new shares through the recent stock dividend, SMH's stake in Young Poong fell below 10% of the total issued shares. Therefore, it became possible to exercise voting rights for Korea Zinc as it is now below the reciprocal holding limit under corporate law.
Young Poong explained that SMH was not a shareholder as of the reference date for the regular shareholders' meeting, December 31 of last year, so it could not receive dividends.
A Young Poong official said, "At the regular shareholders' meeting of Korea Zinc on the 28th, I believe that the legitimate shareholder rights of all shareholders, including those of Young Poong and Korea Zinc, will be properly exercised, and that the corporate governance structure of Korea Zinc will improve."
Meanwhile, Young Poong and MBK Partners immediately filed an appeal against the court's decision to permit the exercise of voting rights.