Min Hee Jin and HYBE, the fight is now on MONEY
While Min Hee Jin, CEO of Ador, the affiliate agency of HYBE, which is now being suspicious of “taking over management rights,” continues the legal dispute, it is analyzed that CEO Min Hee Jin could actually leave “empty-handed” if she is found guilty of professional malpractice.
HYBE sued CEO Min Hee Jin on charges of professional breach of trust on the 25th of last month. If HYBE proves Min Hee Jin’s breach of trust, Bang Si Hyuk can reportedly buy back his shares for 2.865.8 billion won.
In the “contract between shareholders” between Min Hee Jin and HYBE, there is a clause (Article 11 compensation clause) stating that “HYBE has the right to purchase all shares (call option) in case of breach of contract.” The contract states that the trading price per share for stocks subject to call options is “the lower of 70% of face value per share or fair value.”
ADOR CEO Min previously said in a press conference on the 25th, “I can make 100 billion won even if I remain still,” but the amount that Representative Min can get in her hands on could be drastically reduced from 100 billion won to less than 3 billion won. From Min Hee Jin’s point of view, she will virtually resign as the CEO with empty hands, and a court battle is expected over this.
Bang Si Hyuk and Min Heejin’s personal transactions?
Most of all, when Min Hee Jin exercised her call option to purchase 18 percent of her stake in Ador last year, she personally borrowed about 2 billion won from Bang Si Hyuk, chairman of Hive. Some speculate that because of this deal, Min Hee Jin may not have much she can get after reimbursing him.
Although the details of the contract between shareholders have not been disclosed in detail, the industry believes that HYBE’s professional breach of trust against CEO Min Hee Jin can be a problem. In addition, laws on the prevention of unfair competition and protection of trade secrets are also being discussed. Even if CEO Min violates the law, she must go through a fierce court battle.
Accordingly, there is an opinion that HYBE’s call option exercise will not be easy.
The timeline of the fight
HYBE launched an audit on the 22nd, saying CEO Min and Ador’s management attempted to take over management rights. In response, CEO Min has denied the allegations in an emergency press conference on the 25th, saying, “I have never planned, intended, or implemented the takeover of management rights,” but Hive filed a complaint with Yongsan Police Station in Seoul on charges of professional breach of trust, saying evidence of the deputy CEO’s breach of trust, including CEO Min, was secured. OVERVIEW of the press conference, CLICK HERE.
Since then, HYBE has requested a meeting of the board of directors, but CEO Min Hee-jin did not respond, and HYBE has filed an application with the court for permission to hold an extraordinary general shareholders’ meeting. The Seoul Western District Court held a closed hearing on HYBE’s temporary general shareholders’ meeting to dismiss CEO Min on the afternoon of the 30th of last month. Article about that, CLICK HERE.
According to the legal community, a legal representative for Ador said, “A board meeting will be held until the 10th, and a general shareholders’ meeting will be held at the end of this month.” He also announced that he would submit additional responses including the relevant information to the court by the 13th. Hive reportedly said, “We should make a judgment according to the law.”
How it will end? Billionaire Min? or bankrupted Min?
Min Hee Jin’s instagram account, https://www.instagram.com/min.hee.jin/
