[Edaily Reporter Shin Ha-yeon ] SI RESOURCES CO.,LTD.(065420)plummeted to the daily price limit on its first day of trading after resuming trading for the first time in about a month. This is believed to be due to negative news that the effectiveness of the resolutions passed at the extraordinary shareholders’ meeting held last April has been suspended, and that the CEO and outside directors appointed at that time have been barred from performing their duties.
According to MP Doctor on the 16th, as of 9:47 a.m. that day, SI RESOURCES CO.,LTD. was trading at 125 won, down 29.78% from the previous trading day.
SI RESOURCES CO.,LTD. announced the previous day that the Seoul Western District Court had granted a preliminary injunction filed by two individuals, including Mr. Choi, seeking to suspend the validity of the shareholders’ meeting and halt the execution of duties.
The court ruled to suspend the effectiveness of each resolution passed at the extraordinary shareholders’ meeting held on April 21 until the judgment in the related main lawsuit—a suit seeking a declaration that the shareholders’ meeting did not exist—becomes final. The court ordered SI RESOURCES CO.,LTD. to bear the litigation costs.
In addition, the court suspended the duties of CEO and Inside Director Choi Bong-jin, as well as Outside Directors Kim Hyo-soo and Yoo Hyung-seok—all of whom were appointed at that shareholders’ meeting—until the judgment in the main case becomes final. The court found both applications for provisional relief to be well-founded. The date of the decision and the company’s confirmation of the decision was the 11th of last month.
Legal disputes over management control are also continuing. The company announced in a separate disclosure that Mr. Choi, whose duties have been suspended, and one shareholder have filed a criminal complaint against the current CEO, Mr. Jeon, and inside director Mr. Choi on charges of embezzlement and breach of trust. The defendants view this as a malicious complaint and maintain that they will actively defend themselves before the investigative authorities.
Previously, on the 12th of last month, the Korea Exchange requested a disclosure regarding rumors of a preliminary injunction to suspend the general shareholders’ meeting and suspend the execution of duties. As the company failed to meet the response deadline, trading of its shares was suspended starting on the 15th of the same month; however, trading resumed today following the company’s formal disclosure of the inquiry results yesterday.
According to MP Doctor on the 16th, as of 9:47 a.m. that day, SI RESOURCES CO.,LTD. was trading at 125 won, down 29.78% from the previous trading day.
SI RESOURCES CO.,LTD. announced the previous day that the Seoul Western District Court had granted a preliminary injunction filed by two individuals, including Mr. Choi, seeking to suspend the validity of the shareholders’ meeting and halt the execution of duties.
The court ruled to suspend the effectiveness of each resolution passed at the extraordinary shareholders’ meeting held on April 21 until the judgment in the related main lawsuit—a suit seeking a declaration that the shareholders’ meeting did not exist—becomes final. The court ordered SI RESOURCES CO.,LTD. to bear the litigation costs.
In addition, the court suspended the duties of CEO and Inside Director Choi Bong-jin, as well as Outside Directors Kim Hyo-soo and Yoo Hyung-seok—all of whom were appointed at that shareholders’ meeting—until the judgment in the main case becomes final. The court found both applications for provisional relief to be well-founded. The date of the decision and the company’s confirmation of the decision was the 11th of last month.
Legal disputes over management control are also continuing. The company announced in a separate disclosure that Mr. Choi, whose duties have been suspended, and one shareholder have filed a criminal complaint against the current CEO, Mr. Jeon, and inside director Mr. Choi on charges of embezzlement and breach of trust. The defendants view this as a malicious complaint and maintain that they will actively defend themselves before the investigative authorities.
Previously, on the 12th of last month, the Korea Exchange requested a disclosure regarding rumors of a preliminary injunction to suspend the general shareholders’ meeting and suspend the execution of duties. As the company failed to meet the response deadline, trading of its shares was suspended starting on the 15th of the same month; however, trading resumed today following the company’s formal disclosure of the inquiry results yesterday.
