A meaningful change occurred at the general shareholders’ meeting of SM, a large entertainment company. Minority shareholders and large shareholders competed over the issue of appointing an auditor, and the minority shareholder won. The news raised the company’s stock price.
Correspondent Jo Ki-ho.
<기자>
SM Entertainment’s general shareholders’ meeting started two hours later than planned.
This is because both the company and minority shareholders have carefully checked the power of attorney.
The issue at the shareholders’ meeting today (31st) was whether an auditor proposed by minority shareholders would be appointed.
It was Align Partners, an asset management company with a 0.9% stake, that opened the door.
In a letter sent to SM on the 2nd, Align demanded, “The company has requested that the largest shareholder, Lee Soo-man, terminate the service contract with the private company of general producer Lee Soo-man.”
SM paid 24 billion won last year alone and a total of 140 billion won over 22 years to this producer’s personal company, Like Planning, through royalties, etc.
[김성주/얼라인파트너스 과장 : 이 거래가 일어나는 게 최대 주주와의 특수한 거래라는 점이… 금액도 문제지만 절차상의 문제를 많이 주목했습니다. 정말 SM 이사회와 관련이 없는 프로듀서여도 그 정도 가치를 지불했을지….]
Align appealed to minority shareholders to appoint a new auditor, and following a vote once morest the producer, who owns an 18% stake, overwhelmingly won.
As the news spread, SM’s stock price hit a mid-day high.
It is unusual for a minority shareholder to pass an important agenda such as the appointment of an auditor at the domestic general meeting of shareholders.
[이수원/한국기업지배구조원 책임투자팀장 : 과거와 비교했을 때는 정말 고무적인 일이라고 볼 수 있을 것 같고요. 향후에도 이런 후보가 통과된 사례를 보고 행동주의를 표방하는 기관 투자자들이 좀 더 주주 제안을 더 많이 하는 계기가 되지 않을까….]
SM announced today that it will use the shareholders’ meeting as an opportunity to increase shareholder value.
(Video editing: Park Ki-duk, VJ: Park Hyeon-woo)