SEOUL: Hyundai Elevator Co has scored an overwhelming victory over major shareholder Kumgang Korea Chemical Co (KCC) over management control of the de facto holding firm of Hyundai Group after chairwoman Hyun Jung-Eun received enough votes at the shareholders' meeting to secure a board seat.
Hyun's triumph puts an end to the family feud at the company, once considered the country's largest conglomerate.
Hyundai Elevator said 72.24% of shares with voting rights participated in the AGM and 77.8% of participating shareholders voted for Hyun.
We've succeeded in protecting our management control with overwhelming support from our shareholders, Hyundai Elevator spokeswoman Hong Joo-Hyun said.
Company president Choi Yong-Mook, also recommended by Hyundai Elevator, has been approved as a board member, forcing KCC to drop its nominated candidates for the board.
The dispute over management control is now over, Hyun said in a statement after the AGM. It's meaningful (because) the AGM set the ground for another takeoff for the Hyundai Group.
She said the firm would put greater focus in boosting management transparency and maximising shareholder value going forward.
Hyun, the widow of group chairman Chung Mong-Hun, and KCC honorary chairman Chung Sang-Yung have been locked in a dispute for months over control of the elevator maker.
Chung Mong-Hun is the younger son of Hyundai Group founder Chung Ju-Yung and Sang-Yung is the younger brother of the group founder.
The two sides have recommended competing board members and hoped to secure as many board seats as possible at the AGM.
KCC has said it would no longer seek management control of Hyundai Elevator and would sell its entire stake in the elevator maker if it failed to secure sufficient votes for its board candidates at the AGM.
Hyundai Elevator earlier yesterday said it and its friendly parties' total shares with voting rights stood at 40.66%, against KCC's 12.58%.
KCC has been banned from exercising its voting rights on some shares that it bought in violation of disclosure rules. AFX-Asia