South Korea’s National Pension Service (NPS), a major shareholder of Samsung Electronics Co., will vote in favor of the company’s motion of recommending Jay Y. Lee, vice chairman of the Korean tech giant and de facto leader of the country’s largest conglomerate on behalf of his ailing father Lee Kun-hee, as a registered managing board member in next week’s shareholders’ meeting.

The public fund operator is the single largest shareholder in Samsung Electronics with 8.69 percent interest. Once approved, Lee would be legally liable for any mismanagement and subject to disclosure on personal assets. His father had not been a registered board member.

According to finance industry sources on Thursday, NPS’s investment committee decided to vote in approval of the two agendas in upcoming shareholders’ meeting - listing Lee as registered board member and sale plan on Samsung Electronics’ printer business. The company’s board will nominate Lee as a registered member in an extraordinary shareholders meeting on October 27 in a symbolic and legally-binding gesture to endorse Lee as the leader and successor of Samsung Group.

The investment committee found no fault with the proposal as Lee as a legal managing director who would have to be more transparent and responsible in management, said a company official.

Lee is expected to be elected as a registered board member without much opposition as world’s leading proxy advisory firm ISS on October 13 released a report supporting the nomination of Lee as a registered board member, and the Korea’s largest proxy advisory Korea Corporate Governance Service as well as nation’s major institutional investors such as asset management firm showed positive response to the idea.

Samsung Electronics shares finished Friday at 1,589,000 won ($1,399.01), down 31,000 won or 1.91 percent from the previous session.

By Choi Jae-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]