Sovereign launches legal challenge to SK Corp Board's refusal to allow EGM
Sovereign Asset Management ("Sovereign") today announces that its subsidiary company, Crest Securities Limited, has filed an application in the Seoul Central District Court to challenge the refusal by SK Corp's directors to hold an Extraordinary General Meeting (EGM).
Sovereign requested an EGM on 25th October 2004 to protect shareholders interests through a change in SK Corp's Articles of Incorporation essentially preventing any person convicted or indicted of a serious crime to hold a position on the board. This request was rejected by SK Corp.
Sovereign's Chief Executive Officer, James Fitter, said:
"We are taking this action to ensure that the voices of SK Corp's shareholders are heard. This will be welcomed by the many Korean shareholders who have already expressed their desire to be given the opportunity to vote on this important issue. The full potential of the company can only be realised by having genuine accountability and transparency, which flows from ethical leadership."
"Given the continued refusal by SK Corp's board to address the company's weaknesses, including the failure to account for the trillions of won missing from subsidiary companies, the adoption of these proposals is intended to strengthen the quality of management. It is essential that directors of public companies, being entrusted with the public's savings, have demonstrated the highest levels of honesty and commitment to their stewardship role. This leaves no place for those associated with criminal activity."
"We are confident that the Korean courts will act in the best interests of all shareholders, both Korean and international, and uphold the basic legal right to convene an EGM."
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