Sovereign Asset Management ("Sovereign") today expressed concern that the decision by the Korean courts to deny shareholders an EGM at SK Corp will have profound ramifications for the nation's capital markets.
James Fitter, CEO of Sovereign, commented: "Though we have yet to receive the full written judgement of the court, today's decision has alarming implications for shareholders' rights and signals a grave development for the Korean capital markets.
"Investment, wherever it is destined, relies on accountability and transparency which have been diminished with today's decision. SK Corp's shareholders, domestic and international alike, have effectively been told today that they do not have the right to be heard in relation to the company they own."
Fitter said: "Sovereign has never sought to impose change on SK Corp. Rather, we looked to the courts to uphold the right of shareholders to express a choice in the future of the business.
"That choice - between reform on the one hand and remaining opaque and undervalued on the other - would have been simple enough. Today's decision, along with repeated refusals from the board of SK Corp to allow shareholders a vote, demonstrates a continued reluctance to embrace meaningful reform."
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