Dividend Shareholders Confirmed After Dividend Announcement
Board Size Expansion... President Munyo Seeks Appointment as Inside Director
Agenda for Regular Shareholders' Meeting on 23rd Next Month
[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company is abolishing the practice of "blind dividends," where shareholders to receive dividends are determined first, followed by the confirmation of the dividend amount.
On the 22nd, Hyundai Motor announced the "ESG Management System Enhancement Plan," which includes expanding shareholder rights and increasing board diversity. The biggest change is the amendment of the articles of incorporation related to the dividend procedure. Hyundai Motor will change the article from "Dividends shall be paid to shareholders or pledgees registered in the shareholder registry at the end of each fiscal period as a principle" to "The board of directors may set a record date to determine shareholders entitled to receive dividends by resolution, and the record date must be announced two weeks in advance."
In other words, this breaks the previous practice of determining shareholders entitled to dividends at the end of each year before confirming the dividend amount. Instead, the dividend amount will be announced first, followed by the determination of shareholders entitled to receive dividends. This allows investors to decide whether to invest based on the dividend amount. It reflects the global capital market trend emphasizing shareholder value enhancement. On the 31st of last month, the Financial Services Commission and the Ministry of Justice also released a dividend procedure improvement plan containing similar content.
Previously, Hyundai Motor strengthened shareholder returns by canceling treasury shares equivalent to 1% of the issued shares held by the company. At the shareholders' meeting scheduled for the 23rd of next month, an agenda will be proposed to set the year-end dividend at 6,000 KRW, a 50% increase compared to the previous year.
Additionally, Hyundai Motor will expand the size of the board of directors to enhance diversity and expertise. The current number of members will increase from 11 to 13. Accordingly, the number of inside directors will increase from 5 to 6, and outside directors from 6 to 7.
Hyundai Motor has confirmed Professor Seunghwa Jang of Seoul National University Law School and Professor Yoonhee Choi of Konkuk University Law School as new outside director candidates. This decision follows the expiration of outside director Eunsoo Choi’s term and the addition of one more outside director.
Professor Jang is one of the leading international trade experts in Korea. He has experience as an arbitrator at the International Chamber of Commerce (ICC) International Court of Arbitration and as a member of the WTO Appellate Body, among other related fields. Professor Choi is a legal expert with specialization in labor-management relations, having worked with the Central Labor Relations Commission and the National Human Rights Commission.
The additional inside director will be President Jose Munoz. President Munoz, as the global Chief Operating Officer (COO), was recommended as an inside director candidate in recognition of his contribution to improving Hyundai Motor’s global market performance.
The Hyundai Motor annual general meeting of shareholders will be held on the 23rd of next month at the Yangjae building, Hyundai Motor headquarters. To practice carbon neutrality, Hyundai Motor will replace the shareholder meeting notices, which were previously sent by mail, with electronic disclosure starting this year.
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