Korea Zinc said on the 1st it plans to file a criminal complaint against officials from Young Poong and Korea Corporate Investment Holdings (a special purpose company (SPC) set up by MBK Partners) on charges including defamation and obstruction of business.
Korea Zinc sees problems in explanatory materials for the agenda of an extraordinary shareholders meeting posted on the campaign website since Young Poong and MBK began soliciting proxy votes last month.
Korea Zinc argued that the materials contained inaccuracies regarding the disposal of treasury shares and issuance of new shares, follow-up measures related to accounting sanctions, and the process of independent directors' resignations.
Korea Zinc countered that the disposal of treasury shares and issuance of new shares were legitimate business actions, and that it faithfully carried out follow-up measures after a disposition for violating accounting standards was issued. It also argued that the independent director resignations were due to personal reasons, and that the upcoming extraordinary shareholders meeting was convened to meet the requirements for forming the audit committee under the amended Commercial Act.
A Korea Zinc official said, "If information that differs from objective facts about the company and management is spread ahead of the shareholders meeting, it could undermine an environment for shareholders' rational judgment and fair exercise of voting rights," and added, "This case goes beyond the bounds of merely expressing an opinion, distorts specific facts, damages the reputation and credit of the company and management, and has severely impeded normal shareholder communications."