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Hyundai Motor Group deals heavy blow to Elliott in proxy vote

Hyundai Motor Group deals heavy blow to Elliott in proxy vote

Posted March. 23, 2019 07:30,   

Updated March. 23, 2019 07:30


Hyundai Motor Group scored an overwhelming win against Elliot Management at the general shareholders meeting. Hyundai Motor Group Executive Vice Chairman Chung Eui-sun has been appointed by the board as representative director of Hyundai Motor and Hyundai Mobis.

The two South Korean companies held the annual meeting Friday to vote on the appointment of outside board directors and their dividend plans. Around 90 percent of each firm’s shareholders accepted three nominees as outside directors of the Hyundai Motor board and two candidates of the Hyundai Mobis board. In the meantime, five Elliott nominees for the two companies received votes of just around 20 percent of shareholders. Elliott’s proposal to the two firms to provide a combined 8.3 trillion won in dividends was also voted down, each approved by 13 percent and 11 percent.

Hyundai Motor and Hyundai Mobis later held separate meetings to name Executive Vice Chairman Chung as executive director, a move expected to give more leeway to Chung, who became the representative director in six months since he was named executive vice chairman, and in 20 years since he joined the company as director of Hyundai Motor’s Procurement Planning and Coordination Division.