Sovereign Asset Management expresses concern regarding the Korean High Court's decision to deny Crest Securities Limited the right to convene an Extraordinary General Meeting of shareholders at SK Corp.
Crest, a wholly owned subsidiary of Sovereign Asset Management Limited, had called for an EGM in order to give fellow shareholders the opportunity to vote on an amendment to SK Corp's articles of incorporation that would prohibit convicted criminals from serving as executive directors at SK Corp.
The High Court's decision to deny Crest's EGM request was predicated on their assertion that the Sovereign group? endeavour to instil irreproachable leadership at SK Corp was actually aimed at the removal of one particular individual. This reflects the difference in perspectives between the Korean authorities who appear to fear challenges to Korean managers and international investors who are seeking to establish fundamental principles of good governance and have little interest in specific individuals who may fail to meet those standards.
James Fitter, Sovereign's Chief Executive Officer, comments:
"The Sovereign group respects the High Court's authority. Nevertheless, the request for an EGM was never about a particular person but rather was a sincere attempt to provide all shareholders of SK Corp an opportunity to enshrine a common-sense principle at SK Corp - that convicted criminals should not be entrusted with public monies. We hope that in time shareholders will be able to have their voices heard."
The Sovereign group of companies have been working as an advocate for shareholder rights and the accountability of company management in Korea for the last two years.
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