International Voting Rights Consultants Oppose One After Another to Active Shareholder Proposals: Seoul Economic Daily

3 out of 5 ISS objections… 1 objection
Glass Lewis opposes two… Only KISCO Holdings agrees

ISS and Glass Lewis, global voting rights advisory firms, recommend ‘no’ to shareholder proposals from activist funds, which appears to be a new variable.

According to the financial investment industry on the 19th, ISS through the report Namyang Dairy Products (003920)Almost all of them are, except for

So far, companies whose shareholder proposals from activist funds have been reflected in the agenda of regular shareholder meetings include KISCO Holdings (Value Partners Asset Management), JB Financial Holdings (Align Partners Asset Management), KT&G (Flashlight Capital Asset Management , Anda Asset). Management),Taekwang Industrial (003240)(Truston Asset Management), BYC (Truston Asset Management), and Namyang Dairy Products (Cha Partners).

Value Partners Asset Management and Coalition of Minority Shareholders bought 50 billion of treasury stock from KISCO Holdings and appointed an auditor, Alin Partners Asset Management paid 900 earned in cash dividends for common shares and outside directors were appointed to JB Financial Holdings, and FCP Anda Asset. Management presented cash dividends of 10,000 won and 7,867 won for common stock, respectively, and appointed various outside directors as shareholder proposals.

Truston Asset Management asked Taekwang Industrial to increase dividends, lay off its company, and appoint outside directors, and BYC to resolve doubts about fairness in internal transactions, appoint outside directors, and expand shareholder returns. Cha Partners asked Namyang Dairy Products to pay cash dividends of 20,000 earned for common stocks, buy back its own stocks, and appoint auditors.

ISS recommended against the activist fund’s claim because it did not provide sufficient reasons or evidence. However, regarding KT&G, he expressed his support for KT&G’s increase in outside directors, saying, “It is appropriate to elect three additional directors.” He also voted for share buybacks and dividend proposals. In addition, for Namyang Dairy Products, it was recommended to vote for the proposal to appoint Shim Hye-seop as an auditor, saying, “It can alleviate concerns about the internal control of the board of directors.” They expressed their opposition to the dividend proposal, the buy back of treasury stock through a tender offer, and the amendment to the Articles of Incorporation, and there is no convincing basis for all of them.

Another voting rights advisory firm, Glass Lewis, stood in favor of the KISCO Holdings shareholder proposal. “The company has so much working capital that the share buyback amount requested by the bidder is reasonable,” said Glasslouis. There is,” he said.

However, regarding KT&G and JB Financial Group, Glass Lewis found the content of the shareholder proposal unconvincing, saying the company was already promoting appropriate shareholder returns.


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