이 기사는 2022년 03월 17일 07:57 thebell 에 표출된 기사입니다.

Hanssem, a South Korean home furnishing company, is set to hold its annual general meeting on March 23 where shareholders will vote on a director nominated by Teton Capital Partners among other voting items.

Teton Capital, the company’s second largest shareholder, submitted a shareholder proposal in January to appoint Lee Sang-hoon, a law professor specializing in corporate governance, as an outside director and auditor on Hanssem’s board.

The board currently comprises seven members: four officials from IMM Private Equity, which acquired a controlling stake in the company late last year, and three outside directors. The company’s articles of incorporation limits the number of the board members to 10.

The US hedge fund argues that its director nominee will improve the board’s independence, helping the company regain market trust. Hanssem shares have shown a downward trend since the middle of last year, from the mid 100,000 won range to around 88,000 won ($71.31).

IMM Private Equity is the largest shareholder of Hanssem, with a 28.35% stake, and Teton Capital owns 9.24% of the company. Foreign shareholders hold 6%, while domestic institutional and retail shareholders each own about 14%.


IMM Private Equity is estimated to have about 40% of the company’s voting power when taking into account treasury shares with voting rights. It is likely that the private equity will vote against Teton Capital’s proposal.

Getting support from foreign shareholders and domestic institutions is the key for the hedge fund as retail shareholders, which have urged the company to enhance the board’s independence and diversity, are likely to vote for Teton Capital’s director nominee.

What proxy advisory firms will recommend is also important, especially because their recommendations greatly influence voting decisions by institutional investors. Hanssem adopted electronic voting starting from this year, increasing voting access.

“IMM Private Equity has the largest voting power, but there are chances that Teton Capital’s proposal might pass at Hanssem’s upcoming annual general meeting if it gets support from the remaining shareholders,” an industry insider said. (Reporting by Hyo-beom Lee)