Report
Expert Corporate Governance Service (ECGS)
EUR 1000.00 For Business Accounts Only

KION Group - AGM 16 July 2020

General: The AGM is to be held in the form of a virtual AGM in accordance with the German Law to Mitigate the Consequences of the COVID-19 Pandemic. The physical presence of shareholders or their authorised proxies is not possible. The voting rights may therefore be exercised solely by postal vote or by granting authority to the proxies designated by the Company.

Item 2: On 26 March 2020, the Management Board and the Supervisory Board resolved to adjust the proposal for the appropriation of net profits of the financial year 2019 in light of the COVID-19 pandemic and to propose to the AGM 2020 to only pay out the statutory minimum dividend of EUR 0.04 per share. The initial proposal provided for the payment of a dividend of EUR 1.30 per share. In view of the recent events relating to COVID-19, ECGS is in favour of postponing decisions on the dividend, reductions or suspensions that would allow companies to avoid liquidity risks or not generate risk for their survival. The dividend is covered by earnings and free cash flow and can thus be provided by the Company. We recommend support.

Item 5: Deloitte, Munich, is proposed as auditor for the current financial year. We have no concerns over the ratio of non-audit/audit fees. However, we note that Deloitte has audited the Company since the financial year 2007 which exceeds our maximum acceptable term of office. We therefore recommend opposing the re-election of Deloitte as auditor.

Items 6.1 and 6.4: We recommend to oppose the re-election of Jiang Kui due to concerns over the insufficient independent representation on the Board and over aggregate time commitments. Furthermore, we recommend to oppose the re-election of Xu Ping due to concerns over the insufficient independent representation on the Board.

Underlying
KION GROUP AG

Kion Group AG Formerly known as Kion Group AG (Pre-Reincorporation). Kion Group AG is a Germany-based supplier of industrial trucks, related services and supply chain solutions. The activities of the Company are divided into three segments: Industrial Trucks and Services, Supply Chain Solutions and Corporate Services. The Industrial Trucks and Services segment comprises forklift trucks, warehouse technology, counterbalance trucks, towing vehicles, as well as automated trucks and autonomous trucks. It operates through three international brands: Linde, STILL and Baoli, as well as through three regional brands: Fenwick (France), OM STILL (Italy) and OM Voltas (India). The Supply Chain Solutions segment offers integrated technology and software solutions, picking equipment, automated storage and retrieval systems, sorters, and conveyors, marketed under the Dematic brand. The Company is active in more than 100 countries across the world.

Provider
Proxinvest
Proxinvest

Founded in 1995, Proxinvest is an independent proxy firm supporting the engagement and proxy analysis processes of investors. Proxinvest mission is to analyse corporate governance practices and resolutions proposed at general meetings of listed firms.

Proxinvest main services are :

  • ​Proxy reports
  • Definition and monitoring of client customized voting guidelines
  • Corporate Governance Data and Rating
  • Thematic research
  • Engagement support

Proxinvest has been a pioneer and champion of good corporate governance and has grown into a recognised expert in the field.

Proxinvest is independently-owned and only works for investors : Proxinvest does not provide consulting services to the companies it covers, mitigating related risks to its clients and ensuring the independence of our analysis. As a result Proxinvest is able to take a robust, independent, engaged and unconflicted view of the companies in which our clients invest.

As Managing Partner of Expert Corprate Governance Service Ltd (ECGS), Proxinvest has built a large network of corporate governance experts to support clients in corporate governance analysis worldwide. 

Analysts
Expert Corporate Governance Service (ECGS)

Other Reports on these Companies
Other Reports from Proxinvest

ResearchPool Subscriptions

Get the most out of your insights

Get in touch