Young Poong files injunction to suspend Korea Zinc-recommended board members

Young Poong Files Injunction To Suspend Korea Zinc Recommended Board Members

Korea Zinc's extraordinary shareholders’ meeting takes place at Grand Hyatt Seoul, Jan. 23. Joint Press Corps

Korea Zinc’s extraordinary shareholders’ assembly takes place at Grand Hyatt Seoul, Jan. 23. Joint Press Corps

By Jun Ji-hye

Younger Poong, which joined forces with non-public fairness agency MBK Companions to safe management of Korea Zinc, has filed an injunction request with the Seoul Central District Court docket to droop the seven board members really helpful by the zinc smelter. The request cites vital procedural flaws of their appointments, the Younger Poong-MBK alliance mentioned Tuesday.

The injunction, filed on Monday, seeks to forestall the seven members from performing their duties as exterior administrators of Korea Zinc till the court docket decides whether or not to nullify or invalidate the resolutions handed on the agency’s extraordinary shareholders‘ assembly on Jan. 23.

“These administrators had been unlawfully appointed after Korea Zinc Chairman Choi Yun-beom, going through the chance of dropping management, unilaterally and illegally restricted Younger Poong’s voting rights, which exceed 30 p.c of the shares current on the assembly,” an MBK official mentioned. “Permitting them to take part in board resolutions would delay Korea Zinc’s governance reform, finally harming the corporate, its shareholders and traders.”

The transfer got here as Choi, on the eve of the shareholders’ assembly, established a brand new cross-shareholding construction inside the firm to defend his management. Younger Poong Precision, managed by Choi, offered 10.33 p.c of Younger Poong shares to Solar Steel Company (SMC), a completely owned Australian subsidiary of Korea Zinc.

In so doing, Choi successfully nullified Younger Poong’s voting rights, leveraging the restrictions on cross-shareholding voting rights below the Business Act. In consequence, Choi’s facet was in a position to go resolutions, together with the introduction of the cumulative voting system, which he had pushed for to dam the alliance’s really helpful candidates from becoming a member of the board.

The MBK alliance claimed that since SMC is a restricted legal responsibility firm and a international entity, such restrictions below home regulation don’t apply. It filed an injunction request with the Seoul court docket on Friday to droop the validity of the resolutions handed on the assembly.

Individually, Younger Poong additionally filed a prison criticism with the prosecution in opposition to Choi and present and former administrators of SMC on expenses of breach of belief and violations of the Truthful Commerce Act.

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