"Jang Hyeongjin, Yeongpung Advisor, Opposed Bequest at Board Meeting
But Not Properly Reflected in Minutes"
Korea Zinc, which is undergoing a management rights dispute, held an emergency board meeting at its headquarters in Jongno-gu, Seoul on the 30th, and is expected to take measures regarding the Yeongpung-MBK Partners alliance's request to convene an extraordinary general meeting of shareholders. Photo by Jo Yong-jun
Regarding the rights offering resolved immediately after Korea Zinc's recent tender offer for its own shares, claims have emerged that the minutes of the board meeting did not properly reflect the opposition stance of Jang Hyung-jin, an advisor from Youngpoong. The Youngpoong side formally requested a correction of the minutes, but it is reported that Korea Zinc did not accept this request.
According to the Financial Supervisory Service's electronic disclosure system on the 5th, Korea Zinc specified in the minutes of the board meeting resolving the rights offering last month that "the resolution was passed with the unanimous consent of all attending directors except Director Jang Hyung-jin." It further stated, "Director Jang Hyung-jin did not express any particular opposition." Youngpoong raised an issue, arguing that it was recorded as if Advisor Jang did not express any opposition.
This could give the impression that Advisor Jang attended the board meeting and did not particularly oppose the controversial rights offering agenda. On the 1st, Advisor Jang sent a request for correction of the board minutes to Korea Zinc, demanding that his opposition be clearly reflected, but on the 4th, Korea Zinc reportedly verbally informed Youngpoong and Advisor Jang's side that it would not accept the correction of the minutes.
A Youngpoong official said, "Although Advisor Jang clearly expressed opposition to the rights offering agenda, Korea Zinc recorded the minutes as if he did not express any opposition," adding, "It is desirable to amend the board minutes that could cause confusion in the market."
On the other hand, Korea Zinc maintains that it is clearly confirmed in the existing minutes that Advisor Jang opposed the agenda. A Korea Zinc representative stated, "Advisor Jang did not express any particular opinion on the agenda at the time, so the minutes simply did not specify the reasons for opposition in detail," and added, "Our judgment is that it is difficult to interpret the record as indicating that he did not express opposition."
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