
The emblem of Korea Zinc is pictured throughout a press convention in Seoul, Oct. 22, 2024. Reuters-Yonhap
International proxy advisory agency Institutional Shareholder Companies (ISS) has really helpful opposing the adoption of a cumulative voting system at Korea Zinc’s upcoming extraordinary basic shareholders‘ assembly on Jan. 23.
The proposed measure, backed by Korea Zinc Chairman Choi Yoon-beom, is drawing controversy after it was revealed that he excluded cumulative voting at Sorin Corp.’s extraordinary basic assembly in August 2024 to safe management over the corporate’s board.
Based on business sources, a decision to amend the articles of incorporation was handed on the basic assembly of Sorin Corp., convened by the Korea Zinc CFO in August.
The decision, which goals at excluding cumulative voting, was authorised by the Choi household and Korea Zinc, who collectively maintain a 66.67 % stake in Sorin Corp., regardless of opposition from Younger Poong Corp.
“This was an abuse of energy by Choi to stop Younger Poong, a minority shareholder, from gaining any board illustration. ISS has acknowledged Choi’s hypocritical actions and ulterior motives, which led them to suggest opposing the cumulative voting proposal at Korea Zinc’s extraordinary basic assembly,” Korea Zinc’s largest shareholders, MBK Companions and Younger Poong, famous in an announcement.
ISS issued suggestions on Thursday supporting the necessity for reforms inside Korea Zinc’s board and opposing the introduction of a cumulative voting system geared toward securing Choi’s management.
ISS said, “Whereas (the) cumulative voting system is mostly thought of to be useful for minority shareholders, on this case, they could result in unintended penalties that dilute the impression of the modifications sought by the dissident (MBK Companions and Younger Poong).”
ISS additionally really helpful rejecting all seven exterior director nominees proposed by Korea Zinc’s board and advocated for the election of administrators nominated by MBK Companions and Younger Poong to boost board independence and strengthen administration oversight.