60% of Listed Companies in Daegu and Gyeongbuk Region Have Unscheduled Shareholders' Meeting Dates

[Asia Economy Reporter Koh Hyung-kwang] More than half of the listed companies in the Daegu-Gyeongbuk region have yet to set their shareholder meeting schedules. The rapid spread of the novel coronavirus infection (COVID-19) is a major factor. It is reported that many of these companies are considering postponing their shareholder meetings.

According to the Korea Exchange on the 1st, among 105 KOSPI and KOSDAQ listed companies headquartered in the Daegu-Gyeongbuk region with December fiscal year-end, only 43 companies (41.0%) had announced their shareholder meeting schedules by that day. The remaining 62 companies have not yet set their shareholder meeting dates.

Considering the deadline for holding shareholder meetings and submitting business reports (by the 30th) and the deadline for notifying the convening of shareholder meetings (two weeks before the meeting), companies must notify the meeting convening by next week at the latest, making the schedule tight.

The reason many listed companies in this region have not set shareholder meeting dates is largely due to difficulties in preparing for the meetings, such as closing accounts and securing venues, caused by COVID-19. In fact, some venues scheduled for shareholder meetings have suspended operations due to confirmed cases nearby, causing disruptions.

Meanwhile, as financial authorities have decided to exempt penalties for companies that find it difficult to hold shareholder meetings and submit business reports within the deadline, it is expected that a considerable number of companies will seek to postpone their shareholder meetings and business report submissions.

In fact, when the Financial Supervisory Service began accepting applications for penalty exemptions for delayed submissions of business reports on the 28th of last month, KH Vatec, a mobile phone parts manufacturer, became the first listed company to apply for the exemption. This company is headquartered in Gumi City, Gyeongbuk, and has subsidiaries in Tianjin City and Huizhou City, Guangdong Province, China. All these areas are within the influence zone of COVID-19.

Previously, the Listed Companies Association and the KOSDAQ Association conducted a survey targeting affiliates with business sites in China, revealing that 75 companies?15 KOSPI and 60 KOSDAQ?are experiencing difficulties in preparing financial statements and submitting business reports due to COVID-19. Adding the listed companies in the Daegu-Gyeongbuk region, it is expected that the number of companies seeking to postpone submissions such as business reports will increase significantly.

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