Hyundai Motor shareholders vote against Elliott Management's dividend payout proposal
Elliott Management had called for a hefty special dividend and a board shake-up at Hyundai Motor Group to address its "poor governance" and "excess cash".
Hyundai Motor shareholders voted on Friday against Elliott Management's proposals for dividend payouts. Elliott Management had called for a hefty special dividend and a board shake-up at Hyundai Motor Group, South Korea's No.2 family-run conglomerate, to address its "poor governance" and "excess cash".
The US activist hedge fund Elliott Management had made fresh proposals in last year September to restructure Hyundai Motor Group, renewing pressure on the South Korean conglomerate months after forcing it to abandon its own plan. Elliott that owns around $1.5 billion worth of shares in three Hyundai group of companies, called for a committee to review its proposals with other investors and experts, and said its attempts to discuss a new plan had been met with silence.
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Hyundai had rejected the committee idea and added that it hoped “to share our thoughts on how to improve shareholder value with all of our shareholders in due course”.