Hanjin to Discuss Private Equity Proposal Including 'Loss of Director Qualification' Rule at Shareholders' Meeting on 25th

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] Hanjin has decided to discuss the establishment of a regulation for disqualification of directors at the shareholders' meeting on the 25th of this month, following a proposal from a private equity fund that is the second-largest shareholder.

Hanjin announced on the 10th that one of the agenda items for the shareholders' meeting is the proposal to amend the articles of incorporation submitted by the HYK1 Fund.

The shareholder proposal from HYK1 Fund includes a provision that a director loses their qualification if they have been sentenced to imprisonment or higher and less than 10 years have passed since the completion or exemption of the sentence execution.

This is analyzed as an attempt to block the appointment of Vice President Cho Hyun-min as an inside director. Hanjin did not include the agenda to appoint Vice President Cho as a director in this shareholders' meeting.

Additionally, the proposal includes increasing the maximum number of directors from 8 to 10, deleting the regulation that does not apply cumulative voting when appointing two or more directors, introducing electronic voting, and adopting an interim dividend system.

HYK1 Fund also proposed appointing Han Woo-je, CEO of HYK Partners, as an other non-executive director, Kim Hyun-gyeom, CEO of Korea Cloud, as an outside director, and Professor Park Jin of KDI School of Public Policy and Management as an outside director who will serve on the audit committee.

HYK1 Fund is a private equity fund established by HYK Partners, holding a 9.79% stake in Hanjin, making it the second-largest shareholder after Hanjinkal and its affiliates, who hold 27.45%.