Korea Zinc announced on the 21st that it will continue to promote the introduction of a cumulative voting system in line with the purpose of protecting minority shareholders and increasing their rights. Although the court accepted the request for a provisional injunction from MBK Partners and Young Poong to prohibit the election of directors through the cumulative voting system at Korea Zinc's extraordinary shareholders meeting, it is necessary to implement the cumulative voting system to enhance shareholder value at Korea Zinc.
On that day, the court partially upheld and partially dismissed the 'prohibition of agenda submission, etc.' request regarding the cumulative voting system for Korea Zinc's extraordinary shareholders meeting filed by MBK Partners and Young Poong. The court judged that the legal provisions concerning the so-called 'conditional election of directors under the cumulative voting system' were somewhat lacking.
Korea Zinc's board has submitted several agenda items for the extraordinary shareholders meeting scheduled for the 23rd to enhance shareholder value and improve governance. Along with the introduction of the cumulative voting system, the agenda includes ▲ setting a cap on the number of directors (19), ▲ introducing an executive officer system, ▲ electing an outside director as the chair of the board, ▲ splitting the par value of issued shares, ▲ changing the dividend record date, and ▲ introducing quarterly dividends.
Although the introduction of the cumulative voting system was unsuccessful at this extraordinary shareholders meeting, Korea Zinc is committed to doing its best to ensure that various measures aimed at enhancing shareholder value can take root. However, the setting of a cap on the number of directors proposed by Korea Zinc is expected to face difficulty in passing, as it involves amending the bylaws and requires a special resolution (securing two-thirds of voting rights), with MBK Partners and Young Poong (holding 46.7% of voting rights) opposing it.
A representative from Korea Zinc noted, 'We received positive evaluations from domestic and international voting rights advisory firms, the National Pension Service, minority shareholder alliances, as well as from the Ulsan community, civic organizations, and the political sector. We will strive to prevent key national technologies, advanced strategic technologies, and national strategic technologies, where we hold the world's top position in non-ferrous metal technology, from being leaked abroad and from becoming a means for speculative private equity to recover profits. We will do our utmost to prevent speculative private equity MBK and the loss-making smelting company Young Poong from making hostile M&A attempts.'