The Korea Listed Companies Association's independent organization, the Governance Advisory Committee, noted on the 27th that it decided to oppose the shareholder proposal to introduce a cumulative voting system regarding Coway, SOLUM, and DI Dongil's shareholder proposals.
The Governance Advisory Committee explained, "Coway is actively working to enhance shareholder value, using 40% of its net income for shareholder returns, and the proportion of outside directors on the board exceeds half, making the need for a cumulative voting system insufficient. SOLUM has actively pursued enhancing shareholder value by burning 1 million shares this month and has had no illegal activities such as embezzlement or breach of trust in the past three years, indicating a low necessity to strengthen oversight on the existing management through a cumulative voting system."
Regarding DI Dongil, it was noted, "Management transparency is expected to improve through the establishment of an Ethics Management Committee and an Audit Committee at the shareholders' meeting."
The Governance Advisory Committee also opposed the shareholder proposal from SOLUM that would grant authority for share buyback decisions to the shareholders' meeting and introduce advisory shareholder proposals. The committee reacted, stating, "There is a potential for violation of commercial law, and it is expected that the contribution to enhancing shareholder rights will be minimal, raising concerns about side effects relative to real benefits."
The committee expressed support for DI Dongil's shareholder proposal to introduce electronic voting, stating that it would enhance the convenience of participation in the shareholders' meeting and increase shareholder benefits.
Meanwhile, the Governance Advisory Committee positively evaluated Coway and SOLUM's shareholder return policies and DI Dongil's governance improvement policies, recommending approval of the remaining proposals.
The Governance Advisory Committee is composed of independent external experts to ensure fairness and independence, with Emeritus Professor Kwak Soo-geun from Seoul National University serving as the Chairperson.