Corporate Annual General Meetings in Crisis Due to COVID-19, Samsung Electronics AGM Postponement Rumors Circulate

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee] As the novel coronavirus infection (COVID-19) spreads, concerns are growing that companies' shareholder meetings may face disruptions.

Since large-scale gatherings of up to several thousand people are possible, companies plan to strengthen on-site quarantine measures on the day of the shareholder meetings as much as possible. However, if the virus situation worsens, internal discussions are reportedly underway to consider the possibility of postponing the meetings.

According to the related industry on the 1st, Samsung Electronics is internally deliberating on the direction of the shareholder meeting scheduled to be held on the 18th at the Suwon Convention Center in Gyeonggi Province. So far, the plan is to proceed with the meeting as scheduled while maximizing quarantine measures, such as installing thermal imaging cameras at the entrance and distributing masks to shareholders.

However, if the COVID-19 situation does not improve, postponing the shareholder meeting is also being considered as an alternative. Until last year, Samsung Electronics held its shareholder meetings at the Seocho office building in Seoul, but after the stock split, the number of shareholders increased, leading to a change of venue this year to the Suwon Convention Center, which can accommodate up to 2,000 people.

As a leading domestic company, there is a possibility that thousands will gather at the shareholder meeting venue, so the possibility of postponing the meeting as a virus prevention measure cannot be ruled out.

A Samsung Electronics official said, "No changes to the shareholder meeting schedule have been decided yet," adding, "We are discussing various countermeasures, including strengthening quarantine measures in preparation for the virus." Not only Samsung Electronics but also major Samsung affiliates such as Samsung SDI and Samsung Electro-Mechanics currently have no plans to change their shareholder meeting schedules.

SK Hynix will also hold its shareholder meeting as scheduled on the 20th at its headquarters in Icheon, Gyeonggi Province. However, the company plans to maximize quarantine measures on the day of the meeting to prevent the virus. A company official stated, "There are no changes to the shareholder meeting schedule so far, and we are preparing enhanced quarantine measures," adding, "If the schedule is postponed, additional disclosures will be made."

LG Electronics will also hold its shareholder meeting on the 26th of this month at its headquarters in Yeouido, Seoul. Other LG Group affiliates such as LG Display and LG Innotek will hold their shareholder meetings in mid-March.

Smaller companies are rather worried that attendance may be low even if they hold shareholder meetings. This is especially burdensome for companies that need to handle the appointment of auditors, where major shareholders' voting rights are limited to 3%. Since major shareholders' voting rights are restricted and attendance may be low, there is concern that the appointment of auditors could be rejected. Companies are considering measures such as collecting proxy forms in advance to meet the quorum requirements.

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