Hyundai Mobis Co. officially announced on March 7 that it opposes U.S. activist hedge fund Elliott Management Corp.’s shareholder proposals concerning dividends, nomination of independent directors and audit committee members, and increasing the number of board members.
In regard to the demand for dividends worth 2.50 trillion won (US$2.21 billion), Hyundai Mobis said, “The company needs to hold large cash reserves to ensure stability of the supply chain in the component industry and make a large-scale investment to prepare for changes in the auto industry. Dividends worth 2.50 trillion won (US$2.21 billion) can hinder the company’s efforts to secure future competitiveness and damage corporate value as well as shareholder value.”
Regarding the article revision to increase the number of board members to a maximum of 11, Hyundai Mobis said it had no intention of expanding the size of the board. “Considering the size of the company and its business portfolio, it is more important to enhance the quality of board members, such as expertise and diversity, rather than to expand the board size,” it said.
For nomination of outside director candidates and audit committee members, Hyundai Mobis said, “Nomination of candidates recommended by the board of directors – three executive directors and two outside directors with expertise in various sectors, including global business, research and development (R&D), finance and banking, -- is better suited to the needs of the company.”