Min Hee Jin stays? or Can not?
Today, on May 17th is the D-DAY of Min Hee Jin’s fate. A hearing on the provisional injunction to ban the exercise of voting rights by HYBE, the parent company, on ADOR will be held at the Seoul Central District Court on the morning of the 17th. ADOR asked the court to stop HYBE, the largest shareholder, from exercising its voting rights at the Ador extraordinary shareholders’ meeting scheduled to be held on the 31st, and whether the court accepts the application from Ador will be biggest point that depends on Min Hee-jin’s position. Could Min Hee Jin stay or not?
News article from ILGAN Sports seemed accurate and detailed about the number of the cases, so this is the summarized and translated version of the article.
ADOR VS HYBE, Voting Rights Defense
Ador has been taking the position that holding an extraordinary general shareholders’ meeting with Min Hee Jin on the agenda of dismissal violates the shareholders’ contract, as Min Hee Jin’s representative contract period is specified in the contract between Min and HYBE. However, as it failed to prevent the extraordinary shareholders’ meeting itself, it is in a position to defend HYBE’s exercise of voting rights on the agenda.
On the other hand, HYBE is expected to argue that there is no basis for Ador to ban the exercise of voting rights by the largest shareholder. HYBE is clearly determined to exercise its voting rights as the largest shareholder as it is clearly a reason for dismissal given the circumstances of breach of trust they have secured, including evidence that CEO Min Hee Jin violated the contract between shareholders.
when disposition get cited vs when dismissed
If a provisional disposition prohibiting the exercise of voting rights is cited, HYBE will not be able to exercise their voting rights at the extraordinary shareholders’ meeting. In this case, CEO Min Hee Jin stays as the representative of ADOR. However, HYBE can request as the largest shareholder to establish a new Ador management team instead of Min Hee Jin’s team. So it might be Min Hee Jin and HYBE members.
Even if the provisional disposition is concluded as cited, the possibility of leading to the main lawsuit cannot be ruled out. In this case, the extraordinary general shareholders’ meeting scheduled for the 31st is virtually canceled, and the conclusion on whether to dismiss CEO Min Hee JIn can take several months to get answer.
On the contrary, if the provisional disposition is dismissed, HYBE, the largest shareholder, will be able to exercise voting rights at the Ador temporary shareholders’ meeting. As HYBE is strongly expressing the company’s willingness to dismiss CEO Min Hee Jin, it is expected that CEO Min will be difficult to maintain her position as CEO. Since many of the current Ador executives are so called Min Hee Jin’s line, if CEO Min Hee Jin cannot stay, all of the Ador executives are likely to be replaced.
Even if CEO Min is dismissed, the background of the dismissal agenda is due to the breach of duty filed by HYBE, so depending on the results of the investigation and judgment later, CEO Min Hee Jin may have a chance to file a lawsuit for dismissal of his representative position.
If Min Hee Jin stays, New Jeans might have no problem with the group’s activity, but if they do not have Min Hee Jin at the agency, they might have obstacles.
Previous article about Min Hee Jin and HYBE issue, the disclosure of New Jeans’ parents about HYBE CLICK HERE.
Source article (ILGAN Sports) – https://m.entertain.naver.com/now/article/241/0003350865
