On the 19th, the global proxy advisory firm ISS supported the amendment to the articles of incorporation proposed by the management of Korea Zinc at the company's regular shareholders' meeting. However, opinions were divided regarding the director candidates.
ISS expressed its support for all seven of Korea Zinc's proposed amendments to the articles of incorporation, including setting a cap on the number of directors, electing an independent director as the chairman of the board, and increasing the number of audit committee members that can be elected separately, at the regular shareholder meeting scheduled for the 28th.
ISS noted, "We are confident that maintaining the continuity of the current management is fulfilling our duty to maximize shareholder value and successfully execute the long-term business plan (Troika Drive)."
Regarding some amendments to the articles concerning the cap on the number of directors, it was deemed reasonable to limit the number of directors to prevent inefficiencies caused by an excessively large board. It was also expected that electing an independent director as the chairman of the board would enhance board independence and transparency.
However, it recommended opposition to all seven director candidates proposed by Korea Zinc (Park Gi-deok, Choi Naehyun, Kwon Soon-beom, Kim Boyoung, James Andrew Murphy, Jeong Dami, Choi Jaesik). Out of the total 17 candidates proposed by Young Poong and MBK Partners, only four were supported limitedly.
ISS explained, "Park Gi-deok, a candidate for an inside director and CEO, played an important role in promoting the Troika Drive," adding that the recommendation aimed for a more balanced representation and enhanced independence, considering recent developments rather than assessing the candidate's abilities or reputation as a director.
A representative from Korea Zinc stated, "We will continuously pursue ways to enhance board independence and diversity within the current management system as recommended by ISS," and added, "We will do our best to prevent the potential impairment of Korea Zinc's competitiveness, which could result from hostile takeovers (M&A)."