The business purpose of DI is expanded to include 'the manufacture, processing, and sale of aluminum products.' This establishes the basis for the absorption merger with its subsidiary, Dongil Aluminum, which operates in the aluminum business. The absorption merger with Dongil Aluminum has been a request from minority shareholders.
At the regular general meeting of shareholders of DI held on the 28th at the Textile Center Building in Gangnam, Seoul, the agenda to amend the articles of incorporation to add the manufacture, processing, and sale of aluminum products as a business purpose passed with 80.25% support from the shareholders.
DI engages in the manufacture of textile materials. The aluminum business is handled by its subsidiary, Dongil Aluminum, and DI System. The addition of aluminum manufacturing, processing, and sale to DI's business purpose is considered by the industry to be aimed at the absorption merger with Dongil Aluminum.
Seotaewon, CEO of DI, noted that they are 'considering the merger with Dongil Aluminum and are looking at the remaining shares.' Currently, DI holds 99.77% of the equity in its subsidiary, Dongil Aluminum. It appears they are reviewing the purchase of the remaining shares of 11,910 (0.23%) to fully incorporate it as a subsidiary. Last year, DI's aluminum sector revenue was about 231.1 billion won.
An ethics management committee was established within the board of DI, and an agenda to introduce an electronic voting system was also passed. However, the proposals to establish an audit committee and a compensation committee, as well as the introduction of the electronic voting system, were rejected. The proposal for the audit committee was suggested by the DI board, while the proposals for the compensation committee and the introduction of a cumulative voting system were proposed by minority shareholders.
At the meeting, CEO Seotaewon, Vice President Son Jaeseon, and Executive Director Son Sugyong were reappointed as internal directors. The external directors include Kim Hyungjong, a former executive director of SK Securities recommended by the board, Professor Song Wonja from the Department of Business Administration at Suwon University, and Professor Lee Sangguk from the Department of Electrical Engineering at KAIST, recommended by minority shareholders. The agenda to appoint attorney Yun Hyeongju from the law firm Gunwoo as an external director, nominated by minority shareholders, was rejected.
Kim Jongtae of the accounting firm Sejin was elected as the successor to Auditor Kim Changho with 62.44% support. The minority shareholders have opposed the establishment of an audit committee, expecting that company representatives will dominate, and have recommended Director Kim as an internal auditor.
The CEO stated, 'There have been difficulties in communication with shareholders due to the absence of a communication channel for shareholders, and as we have established an IR team, we will strengthen communication with shareholders.'