Korea Zinc's extraordinary general meeting will be held on the 23rd, where small shareholders' groups reiterated the need for the introduction of a cumulative voting system.
This is a claim that the election of directors through cumulative voting should take place at this extraordinary general meeting of Korea Zinc, in terms of reforms for minority shareholders. As the court's decision on the injunction is expected to be issued by the 21st at the latest, attention is focused on the public demands of the small shareholders.
The small shareholder platform Hey Holder noted in an article posted on its website on the 20th titled "Voting rights advisory firms and the National Pension Service's decision, the final conclusion is" that "unless there is separate legislation from the National Assembly, the introduction of the cumulative voting system may be eternally difficult if this opportunity is missed."
Among five major domestic and foreign voting advisory firms, three have recommended the introduction of a cumulative voting system, and on the 17th, the National Pension Service expressed a favorable stance on implementing a cumulative voting system. Notably, Glass Lewis, one of the two global voting advisory firms, stated, "It is positive in that it can protect minority shareholder rights and reflect diverse shareholder opinions in the board composition."
Regarding the recommendation against the cumulative voting system by the other global voting advisory firm ISS and the Korea ESG Standards Institute, it was assessed that "the protective effects for minority shareholders that could arise from the introduction of the cumulative voting system may be interpreted differently by individuals or institutions, and thus such diversity of conclusions is somewhat natural." It was emphasized, "Regardless of the purpose, I support the introduction of the cumulative voting system in terms of institutional reform for minority shareholders."
Attention was also drawn to the National Pension Service's voting policy. The National Pension Service's Fiduciary Responsibility Committee held its first meeting on the 17th and decided to approve the agenda item of "election of directors through cumulative voting," which Young Poong and MBK have consistently opposed at the Korea Zinc extraordinary general meeting. Additionally, they agreed to support all agenda items proposed by Korea Zinc, including 'setting an upper limit on the number of directors.'
Hey Holder stated, "In a situation of voting that is like walking on thin ice, the outcome of the fight could completely change depending on whether there are dissenting votes from Chairman Choi Yoon-bum's friendly shares and where the voting sentiments of other foreign and domestic institutions go," and added, "We must quietly wait for the results until the shareholders' meeting ends on Thursday."