Dong-A Pharmaceutical Co Ltd (000640 KS) Announces That Glass Lewis and ISS Governance Services, the Leading Proxy Voting Advisory Services, Have Recommended Their Clients Vote against Kang-Korea Alcohol Nominees at the October 31 EGM.SEOUL, South Korea -- Dong-A Pharmaceutical Co Ltd (000640 KS) announced today that Glass Lewis & Co. and ISS ISS See Institutional Shareholder Services (ISS). Governance Services, the world's leading independent providers of proxy voting Proxy voting is the delegation to another member of a voting body of that member's power to vote in his absence. It is essentially synonymous to delegated voting. Proxy voting is commonly used in corporations for voting by members or shareholders, because it allows members recommendations and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , have recommended that their clients vote against the election of Kang-Korea Alcohol nominees at the October 31 EGM EGM Electronic Gaming Machine EGM Electronic Gaming Monthly EGM Extraordinary General Meeting EGM Expert Group Meeting EGM Estudio General de Medios (Spanish: General Means Study) EGM Emergency General Meeting . M.S. Kang and Korea Alcohol are attempting to seize control of the Dong-A Board at the EGM. Glass Lewis recommended that shareholders vote against all of the Kang-Korea Alcohol nominees, stating in its report: "...we feel that the reasons provided for electing new directors are insufficient. In the absence of a clear plan of Kang Moon Seok to improve the Company's business and corporate governance, and having reviewed the background and experience of the proposed nominees, we do not find that electing the dissident directors is in the best interests of the Company and shareholders at this time." ISS Governance Services, part of the Risk Metrics Group, stated in its report that shareholders should vote against the election of Yong Seok Jee, Sun Keun Park, Eun-Sub Jung and Jeong Sam Park because, among other reasons, they "have either conflicts of interest with the dissident shareholders dissident shareholders Shareholders who oppose a firm's management or management policy. For example, dissident shareholders of Hewlett-Packard opposed that firm's offer to purchase Compaq Computer. or serious business misconducts committed during their previous employments, [consequently] ISS cannot warrant its support for these four nominees." ISS recommended shareholders vote for Joon-Haeng Lee. ISS also stated with respect to the company's recent issuance of exchangeable bonds (EBs), which has been criticized by the dissidents: "we have concluded that - taking into account that Dong-A does not hold any right to give instructions on how to exercise the voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. along with the fact that the EB holders are all foreign institutional investors and have no relationship with the company - Dong-A has not issued the EBs to restore the voting rights of the treasury shares and revert them to the company." Glass Lewis stated that it "cannot confirm the allegations" made by Mr. Kang and Korea Alcohol regarding the exchangeable bonds. Won Bae Kim, Representative Director & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Dong-A stated: "We are deeply gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the voting recommendations of these universally respected advisory services. Their support validates the hard work by all our employees in fulfilling the Strategic Plan to build shareholder value by turning turn Dong-A into a world class, R&D driven pharmaceutical company. We still have many challenges to meet in reaching that goal, but we are well along the path to success, so long as Mr. Kang and Korea Alcohol stop their efforts to seize control of the Board to serve their own interests." Glass Lewis and ISS issue voting recommendations to approximately 2,000 investment managers, advisory and private wealth managers, mutual fund complexes, hedge funds and pension funds investors located around the world. Additional information regarding the October 31, 2007 EGM can be found at www.protectdonga.com |
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