Financial sector to host periodic shareholder meeting next month, ‘Worker recommended director system’ to be hot potato
Cho Eun Guk | ceg4204@ | 2018-02-26 10:54:40
With the financial holding company`s regular shareholders` meeting scheduled for March, controversy over the recommendation of a worker`s recommendation is expected to rekindle. The major financial companies predicted a massive replacement of outside directors at the March meeting, and major financial unions, including the KB Financial Group union, strongly demanded the introduction of the recommendation of workers.
Shinhan Financial Group and KB Financial Group recently held a board meeting to recommend three outside directors, respectively, according to a financial report on February 25.
Meanwhile, Shinhan Financial recently recommended five out of eight outside directors whose term of office has expired, a new chairman of Jeju Women`s Academy at Kimhwa Nam, a chairman of the Graduate School of Law at Sungkyunkwan University, and CYS CEO Choi Kyung-rok. KB Financial Group also recommends three of the six outside directors who are scheduled to terminate their term of office, and has nominated Sun Woo Seok-ho as a visiting professor at Seoul National University Business School, Choi Myung-hee as vice chairman of Internal Control Evaluation Institute, and Jeong Kwan- Shinhan Financial Group and KB Financial Group will decide on their plans for the photo after they are approved at the regular general meeting next month. These financial institutions, along with the expertise of the financial industry, have taken a large number of outside directors who can meet the government`s basic financial policy.
Besides, Hana Financial Group and Nonghyup Finance, which have yet to replace outside directors, will hold a board meeting in the near future to confirm the candidates for outside directors to recommend to the general shareholders` meeting. Seven out of eight outside directors of HFG are terminated, and all four outside directors of NH Bank are finished.
In particular, this year, the issue of whether or not the union`s recommendation to enter the outside director is a big issue. At the moment, KB Financial Group union will propose shareholder proposal method as a candidate for outside director of Kwon, Soon Won Sookmyung Women`s University. Right now, KB Financial Group`s general meeting, which will be held on the 23rd next month, seems to have a fierce battle against the union that has already nominated three candidates as outside directors and recommends Kwon.
The KB Financial Group union voted for the outside director in September last year as a lawyer, but it was rejected by shareholders. However, KBFG`s union said it is highly likely to enter the board. The National Pension, which voted for last time, is likely to favor it again, and unlike the past, Professor Kwon has no reason to disqualify him. In particular, the government of Moon Jae-in has been politically strengthened because the labor union representative, who participates in the board of directors, exercises voting rights as a policy promise to introduce a priest.
However, in most financial sectors, including KB Financial Group, it is negative for the nomination of outside directors. It is pointed out that if unionized outside directors who are in conflict with the company is used, they will seriously undermine the management rights by conflict with management and major shareholders` decisions. In addition, it is not easy to overcome the final threshold because the financial stockholders `major shareholders are negatively affected by the financial union`s entry into the outside directors, which is evaluated as `aristocratic union`.
In the financial sector, KB Financial Group labor union`s recommendation of workers` recommendation is expected to be extended to other financial companies. Following KBFG, Shinhan Bank and Woori Bank union are planning to introduce a recommendation for workers to work during this year. However, Shinhan Bank is not yet able to decide the appropriate candidates, and the recommendation of the outside directors is postponed to the next meeting. Woori Bank plans to sell the government stake and convert the holding company into a holding company.
On the other hand, KEB Hana Bank and the Nonghyup Bank union are not going to pursue the recommendation of workers immediately. The KEB Hana Bank union is planning to focus on the opposition of Kim Jung-tae for three consecutive terms, and the NACF Bank has to revise the NACF law internally.
A bank specialist pointed out, "Different banks may have different situations, and the introduction of the recommendation system for workers may be different" he said.
By Cho Eun Guk ceg4204@
[ copyright ⓒ The Digitaltimes ]
Shinhan Financial Group and KB Financial Group recently held a board meeting to recommend three outside directors, respectively, according to a financial report on February 25.
Meanwhile, Shinhan Financial recently recommended five out of eight outside directors whose term of office has expired, a new chairman of Jeju Women`s Academy at Kimhwa Nam, a chairman of the Graduate School of Law at Sungkyunkwan University, and CYS CEO Choi Kyung-rok. KB Financial Group also recommends three of the six outside directors who are scheduled to terminate their term of office, and has nominated Sun Woo Seok-ho as a visiting professor at Seoul National University Business School, Choi Myung-hee as vice chairman of Internal Control Evaluation Institute, and Jeong Kwan- Shinhan Financial Group and KB Financial Group will decide on their plans for the photo after they are approved at the regular general meeting next month. These financial institutions, along with the expertise of the financial industry, have taken a large number of outside directors who can meet the government`s basic financial policy.
Besides, Hana Financial Group and Nonghyup Finance, which have yet to replace outside directors, will hold a board meeting in the near future to confirm the candidates for outside directors to recommend to the general shareholders` meeting. Seven out of eight outside directors of HFG are terminated, and all four outside directors of NH Bank are finished.
In particular, this year, the issue of whether or not the union`s recommendation to enter the outside director is a big issue. At the moment, KB Financial Group union will propose shareholder proposal method as a candidate for outside director of Kwon, Soon Won Sookmyung Women`s University. Right now, KB Financial Group`s general meeting, which will be held on the 23rd next month, seems to have a fierce battle against the union that has already nominated three candidates as outside directors and recommends Kwon.
The KB Financial Group union voted for the outside director in September last year as a lawyer, but it was rejected by shareholders. However, KBFG`s union said it is highly likely to enter the board. The National Pension, which voted for last time, is likely to favor it again, and unlike the past, Professor Kwon has no reason to disqualify him. In particular, the government of Moon Jae-in has been politically strengthened because the labor union representative, who participates in the board of directors, exercises voting rights as a policy promise to introduce a priest.
However, in most financial sectors, including KB Financial Group, it is negative for the nomination of outside directors. It is pointed out that if unionized outside directors who are in conflict with the company is used, they will seriously undermine the management rights by conflict with management and major shareholders` decisions. In addition, it is not easy to overcome the final threshold because the financial stockholders `major shareholders are negatively affected by the financial union`s entry into the outside directors, which is evaluated as `aristocratic union`.
In the financial sector, KB Financial Group labor union`s recommendation of workers` recommendation is expected to be extended to other financial companies. Following KBFG, Shinhan Bank and Woori Bank union are planning to introduce a recommendation for workers to work during this year. However, Shinhan Bank is not yet able to decide the appropriate candidates, and the recommendation of the outside directors is postponed to the next meeting. Woori Bank plans to sell the government stake and convert the holding company into a holding company.
On the other hand, KEB Hana Bank and the Nonghyup Bank union are not going to pursue the recommendation of workers immediately. The KEB Hana Bank union is planning to focus on the opposition of Kim Jung-tae for three consecutive terms, and the NACF Bank has to revise the NACF law internally.
A bank specialist pointed out, "Different banks may have different situations, and the introduction of the recommendation system for workers may be different" he said.
By Cho Eun Guk ceg4204@