DI Dongil has expanded its business scope to include manufacturing, processing, and selling aluminium products, laying the groundwork for an absorption merger with its subsidiary, Dongil Aluminum. This merger, sought by minority shareholders, aligns with DI's strategic direction in the aluminium sector.
Image Source: DI Dongil website
At DI's regular general meeting of shareholders, held on the 28th at the Textile Centre Building in Gangnam, Seoul, the proposal to amend the articles of incorporation to reflect this expansion received strong backing, securing 80.25 per cent approval from shareholders.
DI primarily manufactures textile materials, while its subsidiary, Dongil Aluminum, along with DI System, manages the aluminium business. The recent expansion of DI's business scope to include aluminium manufacturing, processing, and sales is widely seen as a step toward an absorption merger with Dongil Aluminum.
CEO Seotaewon stated that the company is "considering the merger with Dongil Aluminum and evaluating the remaining shares." Currently, DI holds a 99.77 per cent stake in Dongil Aluminum and is reviewing the acquisition of the remaining 11,910 shares (0.23 per cent) to gain full ownership. In the previous year, DI's aluminium sector generated approximately 231.1 billion won in revenue.
DI's board established an ethics management committee, and the agenda to introduce an electronic voting system was approved. However, proposals to create an audit committee and a compensation committee, as well as the implementation of a cumulative voting system, were rejected. The DI board had put forward the proposal for the audit committee, while minority shareholders had suggested the formation of the compensation committee and the adoption of cumulative voting.
At the meeting, CEO Seotaewon, Vice President Son Jaeseon, and Executive Director Son Sugyong were reappointed as internal directors. The external directors include Kim Hyungjong, a former executive director of SK Securities, recommended by the board, along with Professor Song Wonja from Suwon University's Department of Business Administration and Professor Lee Sangguk from KAIST's Department of Electrical Engineering, both nominated by minority shareholders. However, the proposal to appoint attorney Yun Hyeongju from the law firm Gunwoo as an external director, also put forward by minority shareholders, was rejected.
Kim Jongtae of the accounting firm Sejin was elected as the successor to Auditor Kim Changho, receiving 62.44 per cent support. Minority shareholders opposed the establishment of an audit committee, citing concerns that company representatives would dominate, and instead recommended Director Kim as an internal auditor.
'There have been difficulties in communication with shareholders due to the absence of a communication channel for shareholders, and as we have established an IR team, we will strengthen communication with shareholders," added the CEO.
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