Proxy Blog

L.G. Display Co. Ltd.

March 7, 2019

The annual proxy for this Korean manufacturer of LCD panels had the following proposals: 

  1. Proforma votes on directors 
  2. Proforma Korean votes on annual confirmation of authorities 
  3. Board proposal on amendments to Articles of Incorporation 

Magni voted as follows: 

  1. For three and against one director. Two of the director candidates are independent and Magni generally supports independent director candidates. One director candidate is the current CEO and Magni supports having the CEO of a company on the board. The other director candidate is a company executive, and hence not independent. Despite being CFO, this candidate does not need to be on the board. 
  2. For Korean proforma proposals. Under U.S. laws and regulations, these matters are handled by the board, thus the topics do not warrant votes by shareholders of US companiesMagni usually votes in support of these topics, unless some controversy or issue has arisen that requires additional investigation or justifies a vote against. In this case, the lack of a proxy is a form of opaqueness, and opaqueness is incompatible with good governance. That said, Magni voted for the accounts and authorities since in the U.S. the topics are not matters requiring shareholder votes. 
  3. For amendments. Several of the amendments reflect changes required to conform to recent legislation. The legislation is related to good governance. Some of the amendments relate to adoption of technology in the shareholder relationship (e.g., providing notice on the company website instead of publishing notices in printed media, replacing paper stock certificates with electronic records). All of the amendments reflect good corporate governance and Magni support such changes.