Min Hee-jin Defends Against Dismissal... Files Injunction to Prohibit Voting Rights Exercise

"Hybe's Claim of Breach of Fiduciary Duty is Absurd"

Min Hee-jin, CEO of ADOR, is making a statement on the 25th at the Korea Conference Center in Seocho-gu, Seoul, regarding the conflict with the parent company HYBE. Earlier, HYBE announced the results of an interim audit on ADOR's management, including CEO Min Hee-jin, and stated that they would file charges against them for breach of duty and other allegations. Photo by Kang Jin-hyung aymsdream@

Min Hee-jin, CEO of ADOR, filed an application for a provisional injunction to prohibit the exercise of voting rights at the Seoul Central District Court to block HYBE's plan to dismiss ADOR's board members.

Sejong Law Firm, legal representative of CEO Min, stated on the 7th, "HYBE has requested the convening of an extraordinary general meeting of shareholders regarding the dismissal of CEO Min and inside directors, which violates the shareholders' agreement signed with CEO Min," adding, "We have filed an application for a provisional injunction to prohibit the exercise of voting rights in favor of the dismissal of inside directors."

CEO Min's side said, "HYBE's claim of breach of fiduciary duty is absurd," and added, "We filed the application to protect ADOR's artists and the corporate value of ADOR."

Earlier that day, CEO Min and ADOR's board members notified HYBE that they would hold a board meeting at a location in Seoul on the morning of the 10th. Although the agenda was not disclosed in detail, it is known that a proposal to convene an extraordinary general meeting of shareholders will be submitted.

Currently, ADOR's board consists of CEO Min, the vice president, and directors, collectively known as the "Min Hee-jin faction." If the extraordinary general meeting is held, it will be difficult to prevent the proposal to dismiss CEO Min from being submitted and passed, as HYBE holds 80% of ADOR's shares. HYBE has already completed the application to the court for permission to convene the extraordinary general meeting in preparation for a failed board meeting or rejection of the agenda.

With CEO Min filing the application for a provisional injunction to prohibit the exercise of voting rights at the court on this day, the decision on whether to dismiss CEO Min will ultimately depend on the judiciary's judgment.

Meanwhile, HYBE launched an emergency audit on the 22nd of last month, reporting that CEO Min and Vice President A attempted to seize management rights of ADOR. HYBE announced that it secured evidence of the management rights takeover through the interim audit report and filed a complaint with the Yongsan Police Station in Seoul on charges of breach of fiduciary duty.

CEO Min denied the allegations of management rights takeover, stating that HYBE framed casual conversations with executives as part of a prearranged scheme to oust her.