Glass Lewis, one of the world’s leading proxy advisory firms, has joined ISS (Institutional Shareholder Services) in strongly supporting the positions of Young Poong regarding its shareholders’ meeting agendas. According to a report released by Glass Lewis, the firm recommended approval of most proposals from Young Poong while advising against the shareholder proposals submitted by Young Poong Precision.
Glass Lewis specifically opposed the “stock dividend” proposal from Young Poong Precision, citing a lack of clear logic on how it would enhance shareholder value despite their claims. The firm assessed that maintaining the company’s current dividend policy was more rational, given the company’s greater insight into its dividend strategies.
In the matter of appointing outside directors to the audit committee, Glass Lewis supported Young Poong’s nominee, Chun Young-jun, praising his legal expertise and experience with listed companies, which would complement the current board’s capabilities. Conversely, they advised against Young Poong Precision’s nomination of Kim Kyung-yul, noting that the audit committee already had someone with similar expertise.
Furthermore, Glass Lewis recommended approval for other proposals from Young Poong including financial statement approval, establishment of board committees, stock split, and setting limits on director remuneration. Previously, ISS had also endorsed all of Young Poong’s proposals and opposed those from Young Poong Precision, a stance shared by the Korean ESG Standards Institute.
Young Poong Precision, owned 70% by Choi Yoon-beom of Korea Zinc, had reportedly engaged in maneuvers that led to the removal of Choi’s voting rights in Young Poong by transferring Young Poong shares to a Korea Zinc overseas affiliate just before an extraordinary Korea Zinc shareholders meeting in January. Subsequently, Young Poong Precision submitted various shareholder proposals, including the nomination of Kim Kyung-yul as an outside director.
A Young Poong representative remarked that Glass Lewis’s recommendations are an international acknowledgment of the company’s efforts to protect corporate value and shareholder rights, and expressed commitment to restoring trust with shareholders.