Resolution to Hold an Extraordinary General Meeting at Today's ADORE Board Meeting
Min Heejin's Dismissal Likely to Be Influenced by Court Ruling
Adore, a subsidiary label embroiled in conflict with HYBE, has decided to hold an extraordinary general meeting of shareholders on the 31st. The proposal to dismiss Adore CEO Min Hee-jin is expected to be presented at the meeting, with the court's ruling on whether HYBE can exercise its voting rights likely to be a key factor.
Adore stated on the 10th, "Today's board meeting was attended by all members, including the auditor, and resolved to hold an extraordinary general meeting of shareholders on May 31." They added, "The agenda for the extraordinary general meeting was decided based on HYBE's request." Attendees at the board meeting included CEO Min, Vice CEO Shin Dong-hoon, Chief Creative Director Kim Ye-min, and one audit committee member.
The agenda for the extraordinary general meeting is ‘Dismissal and new appointment of board members.’ HYBE plans to dismiss all of Adore’s management, including CEO Min, at this meeting. However, since CEO Min’s side filed an injunction to prohibit the exercise of voting rights with the court on the 7th, HYBE must await the court’s decision to exercise its voting rights.
The injunction request seeks to prevent HYBE, which holds 80% of Adore’s shares, from exercising voting rights on the proposal to dismiss CEO Min at the extraordinary general meeting. At the time, CEO Min’s side explained the background of the injunction request as "to protect the artists under Adore, NewJeans, and Adore’s corporate value."
If the court grants the injunction, the convening of the extraordinary general meeting will become meaningless. CEO Min will lead all activities related to NewJeans’ comeback and other matters, and the conflict between Adore and HYBE is expected to continue.
Separately, just before the board meeting, Adore issued an official statement claiming that HYBE’s audit team conducted an illegal audit. In the statement, Adore said, "Until early morning today (the 10th), an unfortunate incident occurred where Adore members suffered due to an illegal audit based on unreasonable issues raised by HYBE’s audit team."
Adore claimed, "Around 7 p.m. on the 9th, after working hours ended, HYBE’s audit team began auditing the head of Adore’s style directing team," adding, "The audit lasted over five hours, and eventually, the audit team followed the member, who was working inside the company, to their home, demanding not only the laptop but also the personal phone, which is not company property, thus conducting an audit beyond the scope of work."
They continued, "Since last month’s audit, HYBE has publicly disclosed the details to the media and has been conducting various forms of smear campaigns," and added, "We are informing you of this fact due to concerns that this coercive audit could also be used for media manipulation."
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