Samsung C&T to Cancel Treasury Shares Worth 300 Billion KRW... Introduces Electronic Voting at Shareholders' Meeting

[Asia Economy Reporter Won Dara] Samsung C&T has decided to cancel 2.8 million treasury shares to enhance shareholder value and expand the dividend payout ratio to 70% over the next three years. An electronic voting system will be introduced at the general shareholders' meeting.

On the 26th, Samsung C&T held a board meeting and finalized the '2020-2022 three-year dividend policy' with these details.

Samsung C&T plans to increase the dividend payout ratio, which was about 60% of dividends received from affiliates, to around 70% over the next three years. For the 2019 dividend, it paid 2,000 KRW per share, which corresponds to about 60% of dividends received from affiliates. Additionally, it will cancel 2.8 million treasury shares (approximately 300 billion KRW in value).

The company explained, "This three-year dividend policy aims to continuously expand shareholder returns using stable dividend income from affiliates such as Samsung Electronics as a resource, thereby enhancing predictability and shareholder value."

Regarding the remaining 23.58 million treasury shares, Samsung C&T stated that it will review various utilization plans, including additional cancellation or use for future growth investments such as mergers and acquisitions (M&A), and will re-disclose the decision at the time of determination.

Starting from the regular shareholders' meeting to be held on the 20th of next month, Samsung C&T will also introduce an electronic voting system. The company said, "Based on an advanced governance system centered on the board of directors, we will continue efforts and communication to enhance shareholder value."

Samsung C&T also appointed three new outside director candidates. Female candidate Janice Lee is an expert in accounting, finance, and risk management, having served as Chief Financial Officer (CFO) at various domestic and international companies across industries such as finance, telecommunications, and machinery. Candidate Jung Byung-seok is an expert in employment and labor policy, formerly a vice minister of the Ministry of Labor, and has advised on corporate governance as an external expert member of Samsung C&T's Governance Committee since 2015. Candidate Lee Sang-seung is an expert in fair trade and corporate governance, contributing to governance improvements as an external expert member of the Governance Committee since 2015.

The Governance Committee, an advisory body to the board, has been integrated with the CSR Committee under the board and expanded into a Governance Committee within the board. The company also introduced a 'designated outside director system' representing outside directors.

This content was produced with the assistance of AI translation services.