Alteogen will expand its tax-exempt dividends pool and pursue shareholder returns and governance improvements by overhauling its board structure.
Alteogen disclosed on the 16th that at the 18th annual general meeting set for the 31st, it will put forward proposals to transfer 80 billion won from capital surplus to retained earnings, newly appoint outside directors, and establish an audit committee.
The 20 billion won in tax-exempt dividends resolved by the board in February is also slated for approval at this shareholders meeting.
The company plans to transfer capital surplus to retained earnings to expand the pool for tax-exempt dividends and pursue a stable shareholder return policy going forward.
Tax-exempt dividends, which use capital surplus for payouts, carry a lower shareholder tax burden than regular dividends.
Alteogen also transferred capital surplus to retained earnings in 2022, securing a 50 billion won pool for tax-exempt dividends.
If the 80 billion won transfer is approved at this shareholders meeting, the total pool will come to 130 billion won when combined with existing funds, and even after using 20 billion won for this dividends payout, about 110 billion won in tax-exempt dividends capacity will remain.
It will also push governance reforms. Alteogen plans to increase the number of outside directors, configuring the board with four outside directors and three inside directors so outside directors hold a majority, and to set up an audit committee. The company said this will enhance transparency and independence in decision-making and continue preparations for a transfer listing on the Korea Exchange's main board.
Chief Executive Jeon Tae-yeon of Alteogen said, "Through this shareholders meeting, we plan to secure an additional 80 billion won in tax-exempt dividends capacity to pursue sustained shareholder returns," adding, "We will strengthen our governance by expanding outside directors and establishing an audit committee, and proceed without a hitch with preparations for a transfer listing on the Korea Exchange's main board."