ACT, a minority shareholder platform, sent a shareholder letter to Samsung Electronics' board of directors on the 24th demanding the company buy back shares worth approximately 2.5% of its market capitalization and list American Depositary Receipts (ADR) in the US market. The proposal aims to recover shareholder value as Samsung Electronics' stock price has declined continuously in recent days. A vote conducted on the ACT platform showed 94.1% of participating shareholders supported the ADR listing review request, with 548 shareholders holding a total of 311,897 shares participating in the subsequent electronic signature process.
ACT Platform Vote Shows 94.1% Shareholder Approval
The vote on the ACT platform regarding Samsung Electronics' ADR listing review request received 94.1% approval from participating shareholders. Following the vote, 548 shareholders participated in an electronic signature process, collectively holding 311,897 shares. ACT stated that participants were verified as actual shareholders through MyData authentication.
Proposal Calls for 37 Trillion Won Buyback and ADR Issuance
The core of the shareholder letter requests Samsung Electronics to purchase treasury shares worth approximately 37 trillion won, representing about 2.5% of the company's market capitalization, place them in trust, and issue ADR in the US market based on these shares. ADR are certificates issued by US financial institutions after holding foreign companies' stocks, allowing overseas companies to be traded like regular stocks on US exchanges. ACT argued that through large-scale treasury stock purchases, Samsung Electronics can reduce domestic circulation volume and have its corporate value evaluated in the same market as global competitors. The platform emphasized this is not simply for fundraising purposes, but to have Samsung Electronics' technological capabilities and intrinsic value directly evaluated by overseas investors.
Shareholder Meeting Approval Required Under Revised Commercial Act
ACT emphasized that shareholder meeting approval must be obtained for the process of using treasury shares for ADR listing. The platform stated that decisions involving large-scale movement of company capital should not be handled solely by the board of directors. According to the revised Commercial Act, treasury shares acquired by a company must in principle be canceled within one year, and shareholder meeting approval is required to continue holding or disposing of them. Therefore, even when disposing of treasury shares for ADR issuance, consent must be sought from shareholders at the general meeting. Lee Sang-mok, CEO of ACT, stated, "Whether it's ADR listing or large-scale performance bonuses, major decisions involving large-scale use of shareholders' assets must seek direct consent from shareholders," adding, "Samsung Electronics' board of directors must make a responsible decision."
ACT Plans to Send Mail to Minority Shareholders
ACT plans to send mail guiding Samsung Electronics minority shareholders on how to gather support once the shareholder registry review process is completed. The platform intends to collect voting rights from scattered minority shareholders to exercise shareholder rights.
FAQ
What is ADR and why does ACT want Samsung Electronics to list it?
ADR (American Depositary Receipts) are certificates issued by US financial institutions after holding foreign companies' stocks, allowing them to be traded like regular stocks on US exchanges. ACT proposed that Samsung Electronics list ADR in the US market to have its corporate value evaluated alongside global competitors and increase accessibility for US investors.
What shareholder approval process did ACT emphasize for the ADR listing?
ACT emphasized that shareholder meeting approval must be obtained under the revised Commercial Act. According to the law, treasury shares acquired by a company must in principle be canceled within one year, and shareholder meeting approval is required to continue holding or disposing of them. Therefore, consent must be sought from shareholders at the general meeting when disposing of treasury shares for ADR issuance.
