Most of the decisions of the extraordinary shareholders’ meeting of Korea Zinc are suspended … A great victory for Young Poong and MBK Partners
Green light for securing control over Korea Zinc
The court decided that the restriction of Young Poong’s voting rights at the extraordinary shareholder meeting of Korea Zinc on January 23 was unlawful and the effectiveness of most resolutions, including the decision to introduce an upper limit for the number of directors.
Since Young Poong’s restriction of voting rights was considered illegal, the tasks of the seven of Korea Zinc nominated directors who were appointed in a procedure with considerable procedural errors were also exposed.
On March 7, the civil department 50 of the Seoul district court gave the application of Young Poong and MBK Partner to suspend the decisions of the extraordinary shareholders’ assembly of Korea Zinc and decided that the restriction of the voting rights of Young Poong in Korea Zinc “in accordance with Article 369, Paragraph 3 of the Commercial Act was illegal.” Resolutions on the end:
Article 1-2: Definition of an upper limit for the number of directors
Article 1-4: STICTION SPLIT
Article 1-6: Appointment of the Chairman of the Board of Directors from the ranks of the external members
Article 1-7: Change of the dividend date
Article 1-8: Introduction of quarterly dividends
In addition, the seven directors named by Korea Zinc was prohibited from performing their duties as external directors.
With this judgment, the decision to amend the statutes for the introduction of cumulative voting (Article 1-1) remains in force, but the limitation of the number of directors (to 19) has been canceled, and the seven directors nominated by Korea Zinc can no longer perform their tasks.
Young Poong and MBK Partners, the largest shareholders, the way to get control of Korea Zinc.
Young Poong and MBK Partners welcomed the court to issue the injunction.
At the annual general meeting of Korea Zinc, which is expected for the end of March, a new board is to be elected by cumulative coordination. Young Poong and MBK Partners have already submitted a shareholder application in which 17 candidates are proposed for the board.
A representative of Young Poong and MBK Partners said: “We will make all efforts to restore the corporate governance of the shareholder value and the company value of Korea Zinc by a fair and transparent general meeting.”
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