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8. Which of the following statement is incorrect about proxy voting in Korea?
| | A. | The dates of annual general shareholders' meeting (AGM) is concentrated in March. |
| | B. | Companies can hold virtual shareholder meetings, but they must be combined with on-site meetings. |
| | C. | Annual general shareholders' meeting (AGM) must be held before the publication of annual business report. |
| | D. | Foreigners must appoint a standing proxy and must exercise their votes directly or through its standing proxy. |
14. Which anti-takeover devices are used in Korea?
I. Issuing treasury stocks to white knight.
II. Issuing new shares to a white knight.
III. Mandatory bid rule.
IV. Dual class shares
| | A. | III, IV |
| | B. | I, II, III |
| | C. | I, II, III, IV |
| | D. | I, II |
9. Which explanation is incorrect about the 10% (short-swing profit) rule in Korea?
| | A. | Any profit made within six months by an insider must be paid back to the company. |
| | B. | This rule led NPS not to engage against Korean Air in 2019. |
| | C. | With the 5% rule change in 2020, NPS is exempt from 10% rule if its investment objective falls under general investment purpose. |
| | D. | National Pension Service (NPS) is subject to this rule regardless of its investment purpose. |
10. Which of the statement is incorrect?
| | A. | Hold out problem can be resolved if a bidder extracts private benefits of control after acquisition. |
| | B. | In a derivative action, lawyers are paid from plaintiff's proceeds. |
| | C. | Mandatory bid rule tends to deter efficient acquisitions if private benefits consumed by the old block holder is greater |
| | D. | The 5% rule tends to weaken the effectiveness of a toehold strategy. |
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