Shareholders go to a company’s general shareholders’ meeting. random news
With the government’s announcement of a plan to introduce a value up program for listed companies, market interest in the level of shareholder returns of companies has increased, and it appears that minority shareholders are also joining in raising their voices before general shareholders this month . meeting (general shareholders meeting) term.
According to the Korea Stock Investors Association, an individual investor group, on the 3rd, the number of listed companies that have received shareholder proposals from minority shareholders ahead of this month’s regular shareholders meeting is as high as 15.
Specifically, the three Ewha Group companies, including Ewha Electric, EID, and Etron, DB HiTek, Sammok Sform, DSK, Alpha Holdings, ST Cube, Castec Korea, Humasis, Daeyang Metal, Aurora, DMS, DI Dongil, and Ananti etc. .
They found that the total number of shareholder solidarity proposals for these listed companies was 59. By type, there were various cases related to the acquisition and cancellation of treasury stock, dividends, and the appointment of outside directors. Active proposals are made, such as directly requesting measures to increase shareholder value and recommending personnel who can represent the voices of minority shareholders.
Such shareholder activism moves are spreading more and more in proportion to the stock investment craze. Shareholder activism refers to the proactive behavior of shareholders breaking away from the current practice of passively responding to corporate management decisions, securing voting rights by collecting shares above a certain level, and then exercising influence through active proposals.
According to the Commercial Act, if you secure more than 3% of the total shares with voting rights or hold more than 1% of the shares for more than 6 months, you can exercise the ‘shareholder proposal right’ to propose issues specific to be. made for the purpose of the general shareholders’ meeting Shareholders attending the general shareholders’ meeting. random news
The implementation of ACT, a solidarity platform for minority shareholders, is also seen as the reason why ‘ants’ have been able to increase their power more easily. On this platform, shareholders can share information about various issues of companies they invest in, and can also take shareholder action by gathering opinions through voting.
According to the ESG Korea Standards Institute’s ‘Analysis of the Status of Domestic Shareholder Proposals’, the number of listed companies that submitted shareholder proposals to the shareholders’ meeting in 2021 was 34, and the number of proposed agendas was 168. As a result of checking the status between January and May last year, 50 for each The number of new cases increased significantly to 195.
In particular, the Minority Shareholder Alliance was chosen as the most active entity, presenting shareholder proposals to 18 of the 50 companies involved. The approval rate of their shareholder proposals also increased from 1.5% in 2021 to 17.1% in the same period last year.
This year, as the need to improve corporate value through shareholder returns has been highlighted through the government-led ‘Value Up Programme’, there are many predictions that ant voices will gain more weight and that companies’ n review this in more detail than in the past.
In fact, DB HiTek, which accepted the shareholder unity proposal this time, recently announced that it has submitted related issues, such as the cancellation of its own shares, to the regular shareholder meeting on March 28. In the case of the DI Dong Minority Shareholder Alliance -il, it is known that they took legal action after confirming that the proposed agenda was not included in the shareholders’ regular meeting agenda.
Kim Jong-young, a researcher at IBK Investment & Securities, predicted in a recent report on the outlook for shareholder proposals, “(As the policy environment is created), companies are likely to engage in dialogue and action with the aim of improving corporate value rather than taking a defensive stance as in the past.”
Meanwhile, there are still many opinions that it is difficult to focus shareholder activism too much on the realization of short-term profits. In particular, since the purpose of the value-up program itself is to drive medium to long-term growth strategies for companies, some experts advise that it is dangerous for investors to view it as short-term good news.
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