ILJIN SNT Co., Ltd. Calls on Board of Aurinia Pharmaceuticals to Honor Shareholders’ Voices Expressed at the AGM

Rhea-AI Summary

ILJIN SNT Co., , a major shareholder of Aurinia Pharmaceuticals (NASDAQ: AUPH), issued an open letter urging the company's board to respect the shareholder votes from the recent AGM. The 2024 AGM saw four directors, including CEO Peter Greenleaf, receiving less than majority support, triggering a call for their resignations as per the company's Majority Voting Policy. ILJIN emphasizes the importance of this change to enhance management performance and improve the company's stock performance. They plan to remain vigilant and advocate for new directors who can implement strategic changes to restore shareholder value.

Positive

• ILJIN's call for board changes reflects shareholder dissatisfaction, potentially leading to a stronger board and better management.
• The AGM results indicate a significant shift towards accountability in the company's leadership.

Negative

• Four directors, including the CEO, received less than majority support at the AGM, indicating a lack of confidence in current management.
• The push for board changes could lead to short-term instability and uncertainty in Aurinia Pharmaceuticals.

One of Company’s Largest and Longest-Standing Shareholders Urges Board to Accept Director Resignations

Announces Intentions to Maintain Vigilance and Continue Actions to Restore Shareholder Value

SEOUL, South Korea--(BUSINESS WIRE)-- ILJIN SNT Co., Ltd. ("ILJIN"), one of the largest shareholders of Aurinia Pharmaceuticals (NASDAQ: AUPH) ("Aurinia" or the "Company"), today issued an open letter to fellow shareholders. The full text of the letter is below.

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July 11, 2024

Fellow Aurinia Shareholders,

Last month, Aurinia (“Company”) announced the voting results of its 2024 annual general meeting of shareholders (“AGM”). The Company announced that four directors -- (i) Peter Greenleaf, President and CEO and a Director, (ii) Daniel G. Billen, Director and Chair of the Board, (iii) R. Hector MacKay-Dunn, J.D, Director, and (iv) Brinda Balakrishnan, Director -- received less than the majority support required under the Company’s Majority Voting Policy.

No doubt the AGM results are a step in the right direction for the future of Aurinia. In this connection, we call on the Company’s Board to honor the voices of shareholders as expressed through the AGM, and accept the resignations of the four directors in accordance with the AGM voting results. We fully expect the Board will change as a result of this vote and begin to serve as a strong, effective board in ensuring improved management performance and securing a breakthrough in the Company stock’s performance in the near future.

So, after months of efforts, including issuance of the three public letters, ILJIN simply wanted to express our sincere gratitude to our fellow shareholders for having the courage to step up and finally making our voices heard. Our collective actions prove that no longer can entrenched management get away with massive losses on shareholders without a consequence to their compensation from the Company, and no longer may the Company’s management enrich themselves through the unrestrained grant of free RSUs -- irrespective of the Company’s performance.

Now, the AGM has paved the path for a change to the Company’s Board, we will need new directors who could help the Company forge a new strategic direction and successfully implement the strategic change. In this respect, we intend to maintain our vigilance and continue to press for the Board to listen to the constituent shareholders both in the selection of the composition of the Company’s new Board and adoption of a new growth strategy for Aurinia. We implore the Company to take the necessary changes at the Company to restore shareholder value in the nearest future possible.

Together, we will make a difference to the future of Aurinia.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711875661/en/

Media:

Yoonhwa Lee

yoonhwa.lee@iljin.co.kr

Source: ILJIN SNT Co., Ltd.

FAQ

What did ILJIN SNT Co., request from Aurinia Pharmaceuticals' board after the 2024 AGM?

ILJIN SNT Co., requested that Aurinia Pharmaceuticals' board honor the shareholder votes and accept the resignations of four directors who received less than majority support.

Which directors at Aurinia Pharmaceuticals received less than majority support at the 2024 AGM?

The directors who received less than majority support were Peter Greenleaf (CEO), Daniel G. Billen (Chair of the Board), R. Hector MacKay-Dunn, and Brinda Balakrishnan.

Why is ILJIN SNT Co., advocating for board changes at Aurinia Pharmaceuticals?

ILJIN SNT Co., is advocating for board changes to improve management performance and restore shareholder value, following significant dissatisfaction expressed at the 2024 AGM.

What might be the immediate impact on Aurinia Pharmaceuticals' stock (AUPH) due to these board changes?

The immediate impact on Aurinia Pharmaceuticals' stock (AUPH) could include short-term instability and uncertainty as new directors are implemented and strategic changes are considered.