HDC Hyundai Development Company Accepts Shareholder Proposal to Amend Articles of Incorporation for Strengthening Safety Management

Jung Mong-gyu, chairman of HDC Group, who has faced public criticism for a series of major collapse accidents in Gwangju, is making a public apology and announcing his position regarding his future at the HDC Hyundai Development Company Yongsan headquarters in Seoul on the 17th, concerning the collapse accident of the outer wall of Hwajeong I-Park in Seo-gu, Gwangju. Photo by Kang Jin-hyung aymsdream@

HDC Hyundai Development Company (HDC Hyundae Industrial Development, Hyunsan) announced on the 3rd that it has decided to partially accept a shareholder proposal regarding amendments to the articles of incorporation, which was made by the Economic Reform Solidarity on behalf of APG, a Dutch pension investment company and a shareholder of Hyunsan. Hyunsan explained, "Given the apartment accident in Gwangju and other incidents, we want to show responsibility and enhance shareholder value."

Earlier, on the 8th of last month, the Economic Reform Solidarity, delegated by APG, submitted a shareholder proposal to Hyunsan requesting amendments to the articles of incorporation.

The proposed amendments included ▲establishing a preamble that codifies the company's obligations regarding sustainable management and safety management ▲introducing a recommendatory shareholder proposal right related to ESG ▲establishing a 'Safety and Health Committee' within the board of directors and appointing at least one outside director specializing in safety and health ▲introducing sustainable management disclosures.

Hyunsan established a new preamble practicing "Jeongdo Management" (principled management), stating that "the company shall build a sound corporate governance based on the principles of principled management and continuously strive to improve it," in response to the proposal to codify the company's obligations regarding sustainable and safety management.

Additionally, regarding the proposal to establish a 'Safety and Health Committee' within the board and appoint at least one outside director specializing in safety and health, Hyunsan agreed to form a committee including one safety and health expert.

Hyunsan plans to submit this amendment proposal as an agenda item for approval at the regular shareholders' meeting scheduled for the 29th of this month.

However, Hyunsan decided not to accept the introduction of a recommendatory shareholder proposal right related to ESG, as requested by APG.

A Hyunsan official stated, "We have decided to accept four proposals except for the introduction of the recommendatory shareholder proposal right," and added, "We will continue to strive to enhance shareholder value." The official also added, "HDC, the holding company and largest shareholder of Hyunsan, will also demonstrate responsible actions."

Hyunsan plans to hold the 4th regular shareholders' meeting on the 29th, which will include agenda items such as approval of the shareholder proposal and approval of the financial statements for the 2021 fiscal year. If the agenda items pass, they will be implemented immediately.

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