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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The National Pension Service (NPS) has decided to exercise its voting rights to oppose a proposal at KT&G's upcoming regular shareholders' meeting on the 26th, which seeks to exclude the use of cumulative voting when selecting the CEO and president.
The NPS Fund Stewardship Committee held a meeting on the 20th and deliberated on the voting directions for the agenda items at the shareholders' meetings of nine companies: KT&G, NAVER, NH Investment & Securities, Hana Financial Group, KB Financial Group, Shinhan Financial Group, Woori Financial Group, Hankook Tire & Technology, and KCC Glass.
Among KT&G's agenda items, the NPS will oppose the proposed amendment to the articles of association that clarifies the method of selecting the CEO and president, arguing that it would make it more difficult for minority shareholders to recommend candidates for the board. For all other agenda items, the NPS plans to vote in favor. The NPS is the second-largest shareholder in KT&G with a 7.1% stake.
KT&G had previously proposed adding a provision to the articles of association that would separate the CEO from other board members when selecting the CEO by cumulative voting. This could reduce the effectiveness of the cumulative voting system, leading to controversy.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
