Stride Partners Successfully Appoint 'HPO' Audit Committee Member... "Beginning to Enhance Shareholder Value"

Activist fund Stride Partners announced on the 1st that its shareholder proposal to appoint an audit committee member was passed at HPIO's regular general meeting of shareholders.

This marks the first case since listing where an audit committee member entered the board through a shareholder proposal, and it is expected to be a significant turning point for improving HPIO's governance and enhancing management transparency.

On the day, Stride Partners revealed that at HPIO's regular general meeting of shareholders held the previous day, their proposed agenda item ‘Agenda No. 3-2, Appointment of Outside Director Nam Jung-gu as Audit Committee Member’ received final approval with 56.26% (3,977,435 votes) of the shares present voting in favor.

The agenda was presented in competition with the company-recommended candidate (Agenda No. 3-1, candidate Kim Gap-ho), and under a separated election system limiting the voting rights of the largest shareholder, the support of general shareholders played a decisive role.

The newly appointed audit committee member Nam Jung-gu is the lead attorney at the law firm Inheon and has extensive experience in corporate legal affairs, including embezzlement and breach of trust cases involving KOSDAQ-listed companies. Stride Partners stated that Nam was a suitable candidate to enhance corporate transparency and guarantee the independence of audits, and had been promoting his appointment.

Immediately after the general meeting, Stride Partners sent an official letter to shareholders stating, “This appointment is the result of your support and participation and will be the first step toward transforming HPIO into a shareholder-centered company,” adding, “We will continue responsible actions to increase corporate transparency and restore the company’s value and stock price.”

Meanwhile, HPIO has recently been embroiled in controversy over shareholder value erosion due to decisions such as pursuing subsidiary listings and expanding executive compensation. Accordingly, Stride Partners plans to continuously demand after the general meeting the withdrawal of duplicate subsidiary listings, disclosure of plans to enhance corporate value, and improvements in dividend policy including IR and differentiated dividends.