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Korean Air's Cho Yang-ho rejected extended term as director of the board

2019-03-27 7 Dailymotion

조양호 회장, 국민연금 주주권 행사로 경영권 박탈… 재벌 총수로 '최초'<br /><br />Now in a landmark vote on Wednesday , the CEO of South Korea's flag carrier,... Korean Air,... was rejected his extended term as director of the board at the country's flag carrier.<br />That's the first for the founding family member of any South Korean corporate giants dubbed "chaebol."<br />Our Choi Si-young has the story. 27 years since he first took over the board in 1992, Korean Air CEO Cho Yang-ho's reappointment as director of the board was rejected by shareholders.<br />A total of sixty-four percent of shareholders present at the meeting voted in support of his reelection, falling just short of the "two-thirds" required for approval under the firm's bylaws.<br />But the result was no surprise, as the National Pension Service,... the airline's second largest stakeholder,... declared a day earlier that it would not vote in favor of the motion to re-elect Cho as director.<br />South Korean civic groups and proxy adviser Institutional Shareholder Services had also recommended investors to vote against the reappointment of Cho, citing “sufficient evidence of egregious governance concerns."<br />Cho is on trial facing charges of embezzlement and tax evasion.<br />Experts point that the pension service rightfully exercised its shareholder's rights to suspend a director unfit to lead the board, but others differ,... saying his contributions to the firm so far should be taken into account when deciding to kick out the long-serving executive.<br />While the ousted Cho can no longer make major decisions as director of the board, he's not completely powerless as he's still Korean Air's largest shareholder.<br />Choi Si-young, Arirang News.

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