Park Cheolwan Proposes Again to Kumho Petrochemical: "Recommend Two Successors for Outside Directors"
[Asia Economy Reporter Hwang Yoon-joo] Former Kumho Petrochemical Executive Director Park Cheol-wan has demanded the nomination of outside director candidates and an increase in dividends ahead of the regular shareholders' meeting scheduled for March.
According to Park's side on the 9th, a shareholder proposal including the nomination of candidates to replace two outside directors whose terms are expiring and the expansion of dividends was sent. A shareholder proposal refers to general shareholders directly presenting agenda items at the shareholders' meeting. If the demands are submitted to the company at least six weeks before the meeting, the agenda will be addressed at the meeting.
Park Cheol-wan is currently the largest individual shareholder of Kumho Petrochemical, holding 8.5% of the shares. When expanded to include the Park family, the Kumho Petrochemical shareholding exceeds 10%. Park Cheol-wan is the eldest son of the late Park Jeong-gu, former chairman of Kumho Group and the second elder brother of Park Chan-gu, chairman of Kumho Petrochemical Group.
Former Kumho Petrochemical Executive Director Park said, "My late father, Park Jeong-gu, chairman of Kumho Group, managed the company with interest in M&A and R&D investment for future growth," adding, "Despite Kumho Petrochemical currently posting record-high earnings, the stock price remains low. To resolve this issue and to continue my father's will by making Kumho Petrochemical's management more transparent, I sent the shareholder proposal."
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Meanwhile, in January last year, Park sent a shareholder proposal that included dissolving the special relationship with his uncle, Chairman Park, as well as replacing the board of directors and expanding dividends. Subsequently, he also demanded the company address three preconditions: suspension of the Kumho Resort acquisition, normalization of the undervalued corporate value, and improvement of corporate governance through the formation of a board with expertise and diversity.
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