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12 April 2021 • Articles

Hankuk Economy

Helping companies create meaningful shareholder engagement

Morrow Sodali, advisory service – helping companies create meaningful shareholder engagement

Speaking with Hankuk Economy, Stanley Chung (Managing Director, Morrow Sodali Korea) said “a company’s strategic decisions and agenda is now more than ever affected by not only it’s majority shareholders but also minority shareholders. All companies need to actively engage with their investors, regularly updating and explaining the company's strategy and be adequately prepared before the general shareholders' meeting to ensure it does not face unfavorable situations and outcomes.”

He predicted that as the market and environment surrounding the companies rapidly change, Morrow Sodali’s advisory services will become a key supporting tool and method for shareholder engagement.

As companies engagement with many shareholders can be limited due to restrictions on internal resourcing and timeframes, Morrow Sodali recommends a collaborative effort in assisting with engagement with foreign institutional investors. Chung said: "It is difficult for foreign investors to check and find Korean company public disclosures, especially only when released in Korean, so if there is no explanation from the company, there will be a tendency for foreign investors to follow the proxy advisor recommendations on special agendas such as corporate governance cases or business restructuring schemes. In order to prevent misunderstandings for shareholders and the company, they are encouraged to work with advisors like Morrow Sodali so that they can proactively and effectively deliver the company message and agenda to its shareholders.”

To read the full article in Korean, click here.

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