How will Hanmi Pharmaceutical’s board members change at its Dec. 19 general meeting?

Hanmi Pharmaceutical has confirmed that it will hold an extraordinary general meeting of shareholders.

In a public filing on Wednesday, Hanmi Pharm announced that it would hold an extraordinary shareholders’ meeting at 10 a.m. on Dec. 19 at the Seoul Transportation Center in Songpa-gu, Seoul.

The extraordinary shareholder meeting will discuss a proposal to dismiss Hanmi Pharmaceutical CEO Park Jae-hyun and Hanyang Precision Chairman Shin Dong-guk, a non-executive director, from their positions as directors and replace them with Hanmi Science Vice President Park Jun-seok and Hanmi Fine Chemical CEO Chang Young-kil.

Hanmi Science, the Hanmi Pharmaceutical Group holding company, made the proposal earlier.

Demanding that Hanmi Pharmaceutical hold an extraordinary shareholders' meeting, Hanmi Science applied to the Suwon District Court on Oct. 2 for permission to hold an extraordinary shareholders' meeting of Hanmi Pharmaceutical. The court held an interrogation regarding the application for Hanmi Pharmaceutical's extraordinary shareholder meeting. Still, the trial is not expected to proceed further, as Hanmi Pharmaceutical has confirmed the date of the extraordinary general meeting.

Hanmi Science will also hold an extraordinary shareholders’ meeting at the same place on Nov. 28.

The agenda includes a change in the articles of association to increase the number of Hanmi Science directors from 10 to 11, the appointment of Hanyang Precision Chairman Shin and Hanmi Science Vice Chairwoman Lim Ju-hyun as directors of Hanmi Science, as proposed by the three-party alliance of Hanmi Science Chairwoman Song Young-sook, Vice Chairwoman Lim and Hanyang Precision Chairman Shin, and a reduced dividend as proposed by Hanmi Science as part of its shareholder-friendly policy.

The outcome of Hanmi Science’s extraordinary general meeting on Nov. 28 is expected to determine the direction of Hanmi Science's voting rights at Hanmi Pharmceutical’s extraordinary general meeting on Dec. 19.

If the three-party alliance wins at the extraordinary general meeting of Hanmi Science and secures a majority of the board of directors, it is expected to favor rejecting the proposal to remove directors Park Jae-hyun and Shin Dong-guk at the extraordinary general meeting of Hanmi Pharmaceutical in December.

However, if Chairwoman Song’s two sons and management rivals—Lim Jong-yoon and Jong-hoon—win, it would raise the possibility of removing directors Park Jae-hyun and Shin Dong-guk from Hanmi Pharmaceutical’s board.