Investors Take Action to Reform Companies Amidst Illegal Actions by Management
Recently, some individual investors have taken matters into their own hands in an effort to reform companies that have been delisted due to illegal actions by their management. These investors are raising money at stake to make a difference. However, some companies are impeding their efforts and even threatening these investors.
Reporter Ko Jeong-hyeon Covers the Story
Fertilizer company Dayyou’s stock trading has been suspended since April following allegations of breach of trust by its CEO. The company is currently under review for delisting. Cho Nam-il, an employee of a large company who was a small investor in Dayyou, has taken action against the unfairness of investors bearing the brunt of the damage caused by management’s illegal actions. Cho is now the second largest shareholder, but the company has consistently refused to cooperate.
When requesting data, Cho was given documents as small as a grain of salt, making it difficult for him to obtain the necessary information. He also received a certificate of contents in his workplace, which seemed to be a subtle threat.
Ewha Group is also facing a delisting review as its executives have been arrested on charges of embezzlement and breach of trust. Minority shareholders in all three associated companies have joined forces, becoming the second largest shareholders. The false disclosure of information has only exacerbated the damage.
During a shareholder meeting, the promotion of the person in charge, who was responsible for false disclosures, was halted, causing frustration among the minority shareholders. They feel that the company is not making any efforts to minimize the damage suffered by the shareholders.
In today’s era of 15 million individual investors, apps and social media platforms that allow for electronic proxies have made it easier for minority shareholders to gather and exert their influence. This trend is expected to continue growing.
Reporting by Ko Jeong-hyeon
Video commentary by Lim Dong-guk and Yun Hyeong
Video editing by Kim Jong-mi
CG by Park Cheon-woong and Jo Soo-in
Original article:
<앵커>
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.
<기자>
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.
( Video commentary: Lim Dong-guk, Yun Hyeong, Video editing: Kim Jong-mi, CG: Park Cheon-woong, Jo Soo-in)
▶ View the original article
▶ SBS News 8 – Watch the full video
#Ants #act #face #delisting #crisis.. #Companies #scared
