STX (011810.KS), a global trading company, will overhaul its board of directors and establish an audit committee as part of a broader push to reform its management.
The company said on the 22nd that it will convene an extraordinary shareholders meeting on Nov. 19 to elect new directors and form the audit committee.
Shareholders will vote on the appointment of five new directors — two inside directors and three independent directors recommended by the Korea Listed Companies Association. The inside director nominees are Jeon Jae-gon, former head of Celltrion's management division, and Park Ji-wan, former head of the ethics management support division at Korea Aerospace Industries (KAI). The independent director nominees are Kang Hong-ki, former deputy head of the Korea Exchange's management support division; Kwon Young-joon, a former judge at the Changwon District Court; and Lee Sang-joon, chief certified public accountant at Hanwool Accounting Corp. STX said it expects the nominees to provide sound oversight and checks on management based on their expertise in capital markets, law and accounting.
The company also plans to fill a majority of its board with independent directors and set up an audit committee composed of three independent directors. Although STX is not legally required to install an audit committee, it is moving preemptively to revamp its governance structure in order to strengthen oversight of accounting transparency and internal controls. The company also plans to create an internal control committee this year to solidify a system of accountable management.
The board overhaul is a central step in the management normalization and reform drive STX has pursued since acquiring Beomhan Industries, and forms part of a business improvement plan the company submitted to the Korea Exchange.
"This board overhaul is an important turning point for breaking away from the past management system and building a transparent and accountable governance structure," an STX official said. "Based on a board with independence and expertise, we will restore market confidence and move forward as a new STX."