Namyang Dairy Products, Bylaw Amendments and Director Appointments Rejected at General Meeting... Auditor Appointment Withdrawn (Comprehensive)

Signboard at the entrance of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] Namyang Dairy Products, which has been embroiled in a legal battle following a failed sale, ultimately rejected all agenda items at the extraordinary general meeting of shareholders that involved appointing personnel from the Han & Company (Han & Co) side. Whether the Hong Won-sik family, who initially promised to relinquish management rights but later reversed their decision, will step away from management is expected to be revealed at next month's general meeting.

On the morning of the 14th, Namyang Dairy Products held an extraordinary general meeting at its headquarters in Gangnam, Seoul, and rejected two proposals: amending the articles of incorporation to introduce an executive officer system and appointing Yoon Yeo-eul, chairman of Han & Co, as a new director. The proposal to appoint Lee Gil-ho, auditor of Yonsei University’s audit office, as an audit director was withdrawn. At the meeting, Namyang Dairy Products CEO Lee Kwang-beom presided as chairman, while Chairman Hong exercised his voting rights through legal representatives from LKB & Partners.

This outcome was already anticipated after Chairman Hong abruptly withdrew the plan to sell Namyang Dairy Products to Han & Co and notified the termination of the stock purchase agreement at the end of last month. As Han & Co responded with a lawsuit to enforce the contract, the conflict between the two parties has escalated into a legal dispute.

Amid doubts about Chairman Hong’s intention to sell the company, Namyang Dairy Products is considering measures to improve governance, including reorganizing the board of directors at an extraordinary general meeting scheduled for next month, separate from this week’s meeting. Chairman Hong, who continues to maintain his position and attend work, is reportedly shifting the management direction from immediate sale to ‘stabilizing management first, then selling.’

A company official stated, “We are discussing key issues related to the general meeting scheduled for next month,” adding, “Substantive matters such as governance improvement, changes in the current Namyang Dairy Products executive team, and board reorganization will be decided.”

Previously, Namyang Dairy Products’ stock price, which had been hovering in the 300,000 KRW range, rose to the 800,000 KRW range after Chairman Hong’s resignation announcement in May, but plummeted to the 400,000 KRW range following the failed share sale, maintaining around 460,000 KRW as of the morning of the 14th.

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