Activist fund Align Partners Asset Management said on the 5th that five of the six listed companies to which it made shareholder proposals, including DB Insurance and Gabia, did not implement the "notice of convocation four weeks before the shareholders meeting."
Earlier, Align Partners requested Coway, DB Insurance, Gabia, SOLUM, A+ Asset Advisor, and Dentium to implement a "notice of convocation four weeks before the shareholders meeting" to ensure that shareholders can effectively exercise their voting rights.
However, all the other companies except Coway did not comply with the request.
As of on the 4th, the listed companies that had not issued a notice of convocation were three: Gabia, SOLUM, and A+ Asset. DB Insurance and Dentium issued notices, but did so after the record date four weeks before the shareholders meeting.
The current Commercial Act stipulates that a notice of convocation must be given two weeks before the day of the shareholders meeting. However, some have noted that a notice two weeks prior is insufficient for domestic and foreign institutional investors to fully review key agenda items and decide whether to exercise their voting rights. To ensure shareholders can effectively exercise their voting rights, the notice should be given at least four weeks in advance.
The Korea Exchange (KRX) also manages "whether the notice of convocation for the shareholders meeting was sent four weeks in advance" as a key indicator for transparent management and protection of shareholder rights through the core corporate governance indicators for companies listed on the main board.
Lee Chang-hwan, head of Align Partners, said, "A notice of convocation four weeks before the regular shareholders meeting is about whether it guarantees sufficient opportunity to compare and review shareholder proposal items with board items."
Lee added, "This is a minimal procedural device to effectively guarantee voting rights and can determine the level of trust in the governance of Korea's capital market."