Investors Pursue Corporate Reform Amidst Delisting Threats
If a company is delisted due to illegal actions by its management, the damage to investors can be severe. In response, a group of individual investors has recently taken matters into their own hands, raising funds and actively working towards reform within these companies. However, some firms are impeding these efforts and even resorting to threats against the investors.
Reporter Ko Jeong-hyeon Investigates
The trading of Dayyou, a fertilizer company, has been suspended since April due to allegations of breach of trust by its CEO. The company is now under review for possible delisting. Cho Nam-il, an employee of a large corporation and a minor investor in Dayyou, expressed his displeasure with the unfairness of burdening investors with the consequences of management’s illegal actions.
Although Cho currently holds the second-largest position in the company, Dayyou has persistently refused to cooperate with the investors. They have even been withholding critical data, providing only trivial information equivalent to a grain of salt in response to their inquiries.
In a subtle attempt to manipulate the situation, Cho also sent a certificate of contents to Dayyou’s workplace, delivering a veiled threat and highlighting the moral and professional responsibility of the current management. The goal of the minority shareholders is to monitor the company and resume trading on behalf of those accountable for their actions.
Ewha Group is also facing a delisting review as its executives were arrested for embezzlement and breach of trust. Determined to protect their interests, minority shareholders have consolidated their shares and now hold the second-largest position in all three associated companies.
The false disclosure of information has further exacerbated the damage caused. Shareholders, like Lee Gi-beom of Ewha Group, have observed the impact of such actions, having sold their shares in Samsung Electronics only to reinvest in Ewha Group.
Concerned about the company’s response to these challenges, the minority shareholders have demanded accountability and halted the promotion of the person responsible for the false disclosures. They believe that the company has made no effort to reduce the shareholders’ losses and have expressed their disappointment in the actions taken so far.
In an era where there are 15 million individual investors, applications and social media platforms that allow for electronic proxies have empowered minority shareholders to gather swiftly, thereby increasing their influence. As a result, it is expected that their impact will only continue to grow.
If a company is delisted due to illegal actions by its management, the damage to investors will be severe. So, recently, some individual investors have raised money at stake and are stepping forward to reform the company themselves, but some companies are interfering with this or even threatening investors.
Reporter Ko Jeong-hyeon covered this story.
Fertilizer company Dayyou’s stock trading has been suspended since April due to allegations of breach of trust by its CEO, and is under review for delisting.
Cho Nam-il, an employee of a large company who was a small investor in this company.
Minority shareholders took action because of the unfairness of having investors bear the brunt of the damage when the illegality was committed by management.
He is currently the second largest shareholder, but the company has consistently refused to cooperate.
When asking for data, give 1 point as small as a grain of salt, or
[조남일/대유 소액주주연대 대표 : (회사가) 소액 주주들에게 전달해준 주주 명부입니다. 자로 대봤을 때는 (글자 크기가) 1mm 정도.]
He also sent a certificate of contents to the workplace and made a subtle threat.
[조남일/대유 소액주주연대 대표 : (현 경영진은) 도덕적·업무적 책임을 가지고 있는 분들입니다. 이분들을 대신해서 저희가 회사를 감시하고 거래를 재개시키는 데 목표가 있습니다.]
Ewha Group is also undergoing a delisting review as its executives have been arrested on charges of embezzlement and breach of trust.
Minority shareholders combined their shares and became the second largest shareholders in all three associated companies.
False disclosure increased the damage,
[이기범/이화그룹 소액주주연대 : (거래 재개 때) 삼성전자에 있던 주식 팔아 가지고 이리 다시 또 들어간 거죠.]
We put the brakes on promoting the person in charge.
[이화그룹 소액주주연대 : 허위 공시 책임자, 그 사람이 (임원으로) 올라가는 그런 황당한 일이 주주총회에서 벌어졌거든요. (회사는) 주주들의 피해를 줄여주려는 그 어떤 노력도 하지 않고 있다고 생각해요.]
In an era where there are 15 million individual investors, apps and SNS that allow electronic proxies make it possible for minority shareholders to collect quickly, so their influence is sure to grow.
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