Samsung C&T held its 56th annual general shareholders’ meeting (AGM) in Seoul on March 20 for the fiscal year of 2019, with 73.4% of voting shares represented at the company’s headquarters in Seoul. The agenda included the approval of the full-year financial statement, appointment of board members, and cancellation of treasury shares.
“In 2020, uncertainty in the global economy is expected to grow as the world continues to face sluggish growth and the wide spread of novel coronavirus,” said Young-ho Lee, Speaker of the AGM. “This will challenge both supply and demand, adding volatility to commodity prices.”
“With this in mind, Samsung C&T will continue to pursue profitable and long-term growth so that it may establish itself as a company unencumbered by external conditions,” he added.
Treasury cancellation
Samsung C&T will cancel 2.8 million treasury shares. Upon the approval of shareholders, the cancellation will be complete by April 24.
The company had also last month announced a new dividend policy. While the previous dividend-per-share (DPS) of KRW 2,000 was equivalent to the company paying out 60% of the annual dividend income it receives from affiliate share assets, the new dividend policy enables this redistribution ratio to be adjusted to up to 70 percent each year, thereby allowing the company to maintain a gradual increase in dividends regardless of changes in the amount of dividend income it receives.
Together, these measures are expected to further strengthen the position of shareholders.
Election of new directors
Three new independent directors were additionally appointed at Friday’s AGM.
They are finance/risk management professional Janice Lee, employment and labor management expert Byung-suk Chung, and governance/fair trade expert Sang-seung Yi.
The newly-elected directors are expected to reinforce the diversity and expertise of the board of directors. This will further bolster the board’s independence, leading to a strengthened corporate governance structure and transparency in business.
“The company will strive to enhance shareholder value by establishing board-centric governance and increasing shareholder returns,” Speaker Lee said.
Share management direction
An important vision for the company’s 2020 management was also put forward.
The Trading & Investment Group will build upon its expertise in chemicals and steel trading, enhancing profitability through upgrading business models. It will foster businesses in renewable energy while developing new business to secure additional growth engines.
The Engineering & Construction Group will focus on establishing a foundation for sustainable growth based on profitable projects and engineering competitiveness. It will leverage its execution abilities to deliver innovative services and values while upholding the values of safety and compliance.
The Fashion Group will reinforce its brand competitiveness by offering tailored design services and expanding online retail channels in light of rapidly changing market trends. It will continue to boost the efficiency of low-profit brands and sales channels.
The Resort Group will seek to utilize differentiated content and marketing to provide customers with an unforgettable experience. It will realize steady profits by improving operational efficiency and service quality, all the while placing top priority on customer and employee safety.
Meanwhile, this year marked the first time for Samsung C&T to conduct electronic voting, encouraging all shareholders to exercise their rights despite schedule conflicts or difficulties due to COVID-19.
For those who attended the AGM despite the current challenging environment, Samsung C&T was fully prepared to ensure their safety as far as possible. Thermal imaging cameras were installed, non-contact infrared thermometers were equipped at the entrance of the conference room, and an ambulance waited outside the building in case of an emergency.
Only those who were fever-free and wearing a mask were admitted to the meeting, having also signed a document detailing their health status. To further prevent infection, attendees were asked to sit two seats apart from each other.
“2020 is expected to be another difficult year, but we will do our best to become a trusted company,” Speaker Lee said.
