The management of The Korea Fund, Inc. narrowly avoided a coup by investors in a recent shareholders meeting, but aggravated investors succeeded in electing two candidates to the fund's board of directors.
A mandate to fire the fund's advisor failed to garner the necessary support. However, the measure succeeded in sending a loud wake-up call to senior management who can no longer ignore shareholder demands.
"In this regard, the full board intends to act diligently to promote the interests of all shareholders of the fund and will also seek out the views of major shareholders who have expressed their concerns regarding certain aspects of the funds current structure and operations," said Robert Challander, chairman of the fund's board of directors.
Still, shareholders succeeded in electing two candidates to the fund's board of directors. Challander also noted that in an upcoming December meeting, the board will address several issues raised by the shareholders, including: "the discount from the net asset value in the funds trading price, the fund's current investment policies and management arrangements, and its investment performance."