South Korean pharmaceutical giant Yuhan has decided to reinstate the chairperson and vice chairperson positions for the first time in 28 years, since Chairman Yeon Man-hee stepped down from his post in 1996.
Yuhan shareholders approved changes to the articles of incorporation to reestablish the posts during the 101st general meeting of shareholders on Friday.
Who will become the company’s chairperson and vice chairperson, however, has not yet been decided, according to the company.
“Yuhan decided to make changes in the articles of incorporation as the company would need the positions to fit the future scale of the company,” Yuhan CEO Cho Wook-je said.
To date, only two people have taken the helm as chairperson of Yuhan -- late Yuhan founder New Il-han and his close aide Yeon Man-hee.
The firm has been hiring professional CEOs to manage its operations since 1969.
Previously, the company had to hold shareholders meetings to appoint chief executives. But the structural change would strengthen the power of the board of directors, allowing them to appoint chief executives.
Some shareholders and employees have criticized the article changes, as they directly run against principles set by the late founder. New, while he was alive, stressed that a company should belong to society and its employees.
New Yi-ling, the only direct descendant of the Yuhan founder, said the moves run afoul of the spirit of her grandfather while attending the general meeting on Friday.
Employees who opposed the change also gathered in front of Yuhan’s headquarters to protest the company's decision.
Meanwhile, the current chair of the board, Lee Jung-hee, who initially emerged as a potential candidate, said he does not intend to take the post, dispelling rumors he spearheaded the change to become the company’s chairperson himself.
Lee became president of Yuhan in 2015 and served for six years. He then became the chair of the board, unlike previous presidents who all retired after their terms.
Yuhan also said the company is not planning on appointing the chairperson anytime soon.
Yuhan CEO Cho added that the company would consider listening to shareholders and employees when the company appoints its new chair in the future.
