Also Concentrated at the End of March... 400 Super Shareholder Meetings in One Day on the 29th

[Asia Economy Reporter Lee Seon-ae] This year as well, there was a concentration phenomenon where regular shareholder meetings of listed companies were clustered on specific dates at the end of March.

According to the Korea Securities Depository on the 13th, as of the 11th, a total of 407 companies listed on the KOSPI and KOSDAQ markets announced that they would hold their regular shareholder meetings on the 29th of this month. These include LG, SK, Kia, Netmarble, Doosan Heavy Industries & Construction, Kakao, Hanwha, Kyungdong Pharmaceutical, and Harim.

The expected concentration dates for shareholder meetings, as predicted by the Korea Listed Companies Association and the KOSDAQ Association, were the 25th, 30th, and 31st of this month, but in an attempt to avoid these dates, it appears that many companies ended up scheduling their meetings on the 29th.

Shareholder meetings were also concentrated on other dates such as the originally expected concentration dates. On the 25th, 361 companies including KB Financial Group, SK Telecom, Kumho Petrochemical, Celltrion, Ottogi, Woori Financial Group, YG Entertainment, Golfzon, Webzen, and Paradise hold their shareholder meetings.

On the 24th (216 companies), 28th (244 companies), 30th (191 companies), and 31st (164 companies), around 200 companies each are also planning to hold shareholder meetings.

Since shareholder meeting notices must be disclosed at least two weeks before the meeting, the number of companies holding shareholder meetings from the 28th to the 31st is expected to increase further if additional companies are included by early this week.

Although the shareholder meeting dispersion voluntary compliance program has been in effect since 2018, there are criticisms that its effectiveness is declining. Companies participating in this program receive incentives such as reduced penalty points for non-disclosure, bonus points in the disclosure excellence evaluation, and reduced fees for electronic voting and electronic proxy voting.

A representative from the Korea Listed Companies Association said, "Due to the amendment of the Commercial Act, companies have to disclose business reports and audit reports at least one week before the shareholder meeting starting last year, making it impossible for companies to hold shareholder meetings in early to mid-March." He added, "The designated auditor system requires more time for external audits, and the increase in overseas subsidiaries also slows down the process."

According to the amended Commercial Act, companies have been allowed to hold regular shareholder meetings in April since last year, but only two companies, Michang Oil Industry (9th) and STX Heavy Industries (9th), have scheduled shareholder meetings in April this year.

A representative from the Listed Companies Association added, "To hold shareholder meetings in April, companies must change the record date for exercising voting rights through amendments to their articles of incorporation, but as of last year, only 28 companies had completed such amendments." He further explained, "Because shareholder dividend issues and amendments to the articles of incorporation are intertwined, it does not seem likely that the number of companies holding shareholder meetings in April will increase significantly."

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