Stride Partners files injunction to include agenda with HPO... Legal response intensifies

Activist investment firm Stride Partners announced on the 7th that it has begun legal action in response to HPIO's refusal to submit shareholder proposals at the general meeting of shareholders.

According to the Financial Supervisory Service's electronic disclosure system on the same day, Stride Partners filed a 'provisional injunction application for proposal submission' against HPIO at the Seoul Southern District Court the day before. They requested the court to order HPIO's board of directors to officially include the shareholder proposal as an agenda item.

The main content of the provisional injunction application is that the agenda item of 'appointment of separately elected audit committee members' must be officially submitted at the upcoming regular general meeting of shareholders scheduled for this month. It also requires that the announcement and notice of convocation for the meeting specify the agenda item and candidate information.

Previously, Stride Partners officially requested HPIO to submit the agenda item of 'appointment of separately elected audit committee members' at the regular general meeting of shareholders, but HPIO rejected the request. After one or two shareholder letters, HPIO reportedly only sent vague responses stating they would 'review in compliance with laws and regulations.'

A representative of Stride Partners stated, “Since HPIO did not clearly express its position on the shareholder proposal, we judged that there was a high possibility that the shareholder proposal was being deliberately ignored, so we filed a provisional injunction application with the court.”

If the court grants Stride Partners' provisional injunction application, HPIO will be forced to submit the agenda item at the regular general meeting of shareholders. In this case, the possibility of limiting the management's unilateral decision-making will increase. Even if the application is dismissed, Stride Partners is expected to pressure the management through main litigation and additional shareholder actions.

This provisional injunction application is interpreted as part of an activist campaign surrounding the restructuring of HPIO's governance. A financial investment industry official said, “This legal procedure can be seen as a strategic move to strengthen shareholders' rights and pressure governance restructuring beyond a simple shareholder proposal,” adding, “There is also a possibility of a vote battle at the shareholders' meeting after the court's decision.”

Meanwhile, HPIO's regular general meeting of shareholders is scheduled to be held in March. Stride Partners plans to unite with institutional investors and minority shareholders to enforce the shareholder proposal and is reportedly considering additional legal actions.