South Korea’s leading steelmaker Posco has accepted a shareholder proposal for the first time to recommend an outside board director.
Posco announced on Tuesday that it nominated Park Kyung-seo, a business administration professor at Korea University, for a new independent director position after receiving recommendation from overseas institutional investors including Dutch pension fund APG and asset manager Robeco. Park had worked for the Korea Exchange and the Korea Corporate Governance Service and is serving as president of the Public Funds Management Commission under the Financial Services Commission.
A shareholder proposal is a resolution submitted by an individual shareholder or a group of shareholders for consideration at a company’s annual meeting. Many companies adopt the shareholder proposal system to allow shareholders to be directly engaged in an important decision making process and to increase business transparency.
“We accepted the shareholder proposal for the first time to enhance transparency, strengthen communication with shareholders and reinforce shareholders’ right,” said Posco. The company also nominated former minister of Oceans and Fisheries Kim Sung-jin as another candidate for an outside director.
The total number of Posco’s independent directors would reach seven, including Park and Kim and existing members including Chairman of Korea Employers Federation Park Byung-won and President of Financial News Kim Joo-hyun who were re-nominated.
By Moon Ji-woong and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]