Align Partners: "Most Companies Reject Proposal to Issue Shareholders' Meeting Notice Four Weeks in Advance"

Only Coway Accepted
DB Insurance, Gabia, Solu-M, and Others Rejected the Proposal

Align Partners submitted shareholder proposals to six listed companies ahead of this year's first regular shareholders' meetings, but five companies, except for Coway, did not accept them.

On March 5, Align Partners announced that it had proposed to Coway, DB Insurance, Gabia, Solu-M, A+ Asset Advisors, and Dentium to issue the shareholders' meeting notice four weeks prior to the meeting. However, all companies except Coway did not implement this proposal.

Although this measure was intended to effectively guarantee shareholders' voting rights, it was not accepted. The Commercial Act stipulates that a notice convening a shareholders' meeting must be sent at least two weeks before the meeting date, but Align Partners has pointed out that this period is insufficient. Their position is that both domestic and foreign institutional investors do not have enough time to thoroughly review key agenda items and decide whether to exercise their voting rights. The Korea Exchange also manages "notification of shareholders' meeting four weeks in advance" as a key indicator for transparent management and protection of shareholder rights through its corporate governance guidelines for companies listed on the KOSPI market.

Among the companies that received proposals from Align Partners, Gabia, Solu-M, and A+ Asset Advisors had not issued their shareholders' meeting notices as of the previous day. DB Insurance and Dentium also failed to issue the notices four weeks before the meetings.

Lee Changhwan, CEO of Align Partners, pointed out, "Issuing the shareholders' meeting notice four weeks in advance is the minimum procedural safeguard for the effective guarantee of voting rights and a matter that directly affects the governance credibility of the Korean capital market."

Meanwhile, Align Partners, through a separate public shareholder letter, had requested that specific execution plans to enhance corporate value be established and disclosed before the regular shareholders' meetings.

To Solu-M, Align Partners requested on February 12 that concrete execution plans regarding the spin-off plan, business portfolio restructuring, and compensation system revision be disclosed by the time the shareholders' meeting notice is issued.

To A+ Asset Advisors, Align Partners demanded on February 11 that detailed plans and a timeline for enhancing corporate value be announced by March 11.

Additionally, for Coway, Align Partners requested on February 13 that a clear position on the mid- to long-term capital allocation policy, governance improvement direction, and management compensation system revision plan be provided by March 13.

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