Park Cheolwan Files Injunction to Prohibit Voting Rights for OCI After Stock Swap with Kumho Petrochemical

In March last year, Executive Director Park Cheol-wan is speaking at a press conference held at the Westin Chosun Hotel in Jung-gu, Seoul, on the topic of enhancing the corporate value of Kumho Petrochemical. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Heung-soon] The side of former Executive Director Park Cheol-wan, the largest individual shareholder of Kumho Petrochemical, announced on the 11th that they have filed an injunction request at the Seoul Central District Court to prohibit the exercise of voting rights on treasury shares exchanged between Kumho Petrochemical and OCI.

Park's legal representative, the law firm 'Lynn,' stated on the same day, "Under the Commercial Act, a company's treasury shares do not have voting rights, but if these shares are disposed of to a third party, the voting rights are revived," adding, "This has the same effect as issuing new shares to friendly shareholders for the purpose of defending management rights in a management dispute situation."

Earlier, Kumho Petrochemical exchanged treasury shares worth 31.5 billion KRW with OCI's treasury shares of the same value in December last year, citing the reason of strengthening the partnership with OCI, with which they planned to establish a joint venture. Kumho Petrochemical gave 171,847 common shares to OCI, which accounts for 0.57% of Kumho Petrochemical's total shares.

The late Park Jeong-gu, former chairman of Kumho Group, was the father of former Executive Director Park, who is the nephew of current Chairman Park Chan-gu. He currently holds 8.5% of Kumho Petrochemical's shares as the largest individual shareholder. Including shares held by special related parties, the total shareholding amounts to 10.16%.

Previously, former Executive Director Park initiated a management rights dispute against his uncle, Chairman Park Chan-gu of Kumho Petrochemical, but lost and was dismissed from the company. Ahead of the upcoming regular shareholders' meeting next month, former Executive Director Park recently sent shareholder proposals to Kumho Petrochemical demanding dividends as well as the appointment of directors and auditors.

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