At ADORE's Temporary General Meeting, Two Close Associates of Min Hee-jin Removed as Inside Directors
HYBE Appoints Three New Inside Directors
Min Hee-jin to Hold Press Conference This Afternoon
CEO Min Hee-jin of ADOR has filed an injunction to prohibit the exercise of voting rights against HYBE, continuing the conflict between HYBE and CEO Min. The photo was taken on the 8th at the HYBE headquarters in Yongsan-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
HYBE has taken control of the ADORE board of directors. Min Hee-jin, CEO of ADORE, has become isolated as all other board members are HYBE executives. It is expected that there will be difficulties in reaching agreements on important matters to be decided by the board in the future.
At the ADORE shareholders' meeting held on the morning of the 31st, HYBE, the largest shareholder, proposed and passed a resolution to dismiss internal directors Shin and Kim. Subsequently, three HYBE internal executives?Lee Jae-sang CSO, Kim Joo-young CHRO, and Lee Kyung-jun CFO?were newly appointed as internal directors.
However, HYBE did not dismiss CEO Min, as the court accepted Min’s injunction request to prohibit the exercise of voting rights against HYBE the day before.
Immediately after the court’s ruling, HYBE officially stated, “We respect the court’s judgment regarding the injunction lawsuit filed by CEO Min Hee-jin and will not exercise voting rights in favor of the ‘dismissal of internal director Min Hee-jin’ at this extraordinary shareholders’ meeting.”
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 trust and other allegations. Photo by Kang Jin-hyung aymsdream@
However, HYBE stated, “The court clearly indicated in its decision that ‘CEO Min Hee-jin sought ways to independently control ADORE by taking NewJeans out of HYBE’s control or pressuring HYBE to sell its shares in ADORE, thereby weakening HYBE’s control over ADORE.’ Accordingly, we plan to proceed with follow-up procedures within the legal framework,” hinting at a reshuffle of internal directors.
Min’s side warned, “As there is no reason to dismiss CEO Min Hee-jin, there is also no reason to dismiss the two internal directors aligned with her. If HYBE dismisses these directors, it clearly disregards the court’s decision and dismisses them without just cause,” but ultimately failed to prevent the dismissal of the internal directors.
Thus, the ADORE board has been reorganized into a 1-to-3 structure, with CEO Min versus three HYBE-affiliated members. While Min can continue to oversee the activities of the girl group NewJeans as before, her management authority is expected to be significantly reduced since major business matters must go through the board.
The legal dispute between HYBE and CEO Min is also expected to continue for the time being. A police investigation into Min’s alleged breach of trust is underway, and it is anticipated that the court’s substantive judgment will take time.
Meanwhile, Min’s side will hold a press conference at 2:30 p.m. at the Korea Press Center in Jung-gu, Seoul, to explain their position regarding the extraordinary shareholders’ meeting.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
