By Kim Tae-jong
Large numbers of listed firms will hold their shareholders’ meetings at virtually the same time on the same day, raising suspicions from minority shareholders.
They claim that big companies collusively fix the date in a move to block minority shareholders from attending their meetings.
According to the Korea Listed Companies Association (KLCA), 36.5 percent, or 65 out of 178 companies reported, as of Feb. 22, that they plan to hold their shareholders’ meeting on March 16 and another 32 percent or 57 firms will do so on March 23.
Firms closing their books in December are obliged to hold shareholder meetings by the end of March, and they should report the data for the meeting in advance.
Although they are given a three-month period to prepare and hold shareholder meetings, many firms traditionally hold them on the same day in the last month allowed.
Samsung Group’s seven affiliates such as Samsung Electronics, Samsung Heavy Industries and Samsung Card will hold their meetings at 9 a.m. on March 16. Hyundai Motor Group’s affiliates such as Hyundai Motor, Hyundai Glovis and Hyundai BNG Steel will also convene theirs on the same date.
E-Mart, Shinsegae I&C, Shinsegae Food, Shinsegae International, which all belong to Shinsegae Group, will hold shareholder meetings on March 2.
But pundits argue conglomerates are attempting to block shareholders from exercising their rights by holding multiple meetings on a single day and they can effectively dodge shareholders’ attention and interference.
“It is the only time during the year when they can exercise their rights,” said Lee Ji-soo, a lawyer from the Economic Reform Research Institute. “But if they hold a meeting en masse, shareholders cannot properly express their views and ideas and important demands from them tend to be neglected.”
But many also argue that it is impossible or wrong to force companies to the meetings on different days.
“Listed companies have maintained such practices for the past 20 years,” a KLCA official said. “And it’s not right for us to tell companies to split dates as it is totally their decision.”
He also mentioned that the majority of listed firms in Japan also hold shareholders’ meetings on the same day.
Companies said they can’t hold meetings earlier, citing the need to finalize accounting reports, and it is the decision of each affiliate.
“It’s a long-held tradition to hold a meeting between late February and March,” an official from Samsung Group said. “We can’t give a certain date to each affiliate for their meeting, because it’s their decision.”