The conflict between HYBE (chairman: Bang Si Hyuk) and its label ADOR is escalating. The reason for the conflict is whether CEO Min is trying to seize management rights. CEO Min said on the 25th of last month
HYBE held a press conference to express their dissatisfaction, and on the same day, they confessed to the police that they had indicted Min and others on charges of breach of trust.
On the 22nd of last month, HYBE requested that a board meeting be held on the 30th in order to replace the management team through an audit by ADOR, citing attempts to seize management rights.
HYBE's demand to replace ADOR and the internal board of directors was illegal, so HYBE pulled the trigger and called for an extraordinary shareholders meeting.
On the 25th of last month, HYBE filed a request with the court for permission to convene a shareholders' meeting.
The Seoul Western District Court held a hearing on ADOR's request for approval of a special shareholders meeting on the afternoon of the 30th. If the court specifies a hearing date, approval is usually granted three weeks later.
If there are no special issues, the court will accept the shareholders' request and authorize the shareholders' meeting. Immediately after the court gives its permission, the shareholders will be notified of the extraordinary general meeting, which will be held within two to three weeks.
If a shareholders' meeting is held, it is highly likely that HYBE, which holds 80% of the shares, will replace ADOR's management team, including CEO Min.
On the same day, both parties were cautious in their words, saying, "We will leave it to the court's decision." A lawyer from Se Jeong, a law firm representing ADOR, said, "(
"While the comeback date and music video release date for 'New Jeans' had been decided and preparations were underway, a request for permission to convene an extraordinary general meeting of shareholders came in," the company said.
"I filed a complaint in response to what I had said to Mi, but how can I go through this procedure again in the midst of all this?" he continued. "The board of directors will meet until May 10, and the general shareholders' meeting will be held until the end of May.
"We will give further details to the court including this matter by May 13th," he said. In response, HYBE Vice President Jung Jin-soo said, "(ADOR)
We will have to wait and see how this plays out," he said, adding, "Since he spoke in court, I don't think it's a lie. I look forward to the court making a decision."
Before the issue of the shareholders' meeting between the two parties had settled,
HYBE believes that Min made this request in the same vein as his "attempt to seize management rights," but ADOR has completely denied it.
According to ADOR and other sources, in a meeting with HYBE CEO Park Ji-won in January, Min decided that matters related to the conclusion of important contracts, including exclusive contracts, would be the authority of the CEO.
HYBE rejected the request, calling it unreasonable. In entertainment agencies, exclusive contracts usually require the consent of the board of directors. Currently, ADOR's board of directors consists of CEO Min and his close aide.
However, in the current structure where HYBE holds 80% of ADOR's shares, HYBE can convene an extraordinary general meeting of shareholders to decide ADOR's position.
If HYBE accepts Min's demands, "NewJeans" will be in line with the will of ADOR's board of directors and HYBE.
Regardless of the situation, the exclusive contract can be terminated based on CEO Min's decision. HYBE says "no" to the situation where they cannot stop "NewJeans" from leaving.
Since NewJeans is the only artist under ADOR, if NewJeans terminates their contract, only the staff will remain with the company.
The company believes that the request for the right to terminate the exclusive contract is consistent with the transcript of the conversation that was released in the interim audit results on the 25th of last month, in which the CEO stated, "We will take ADOR away as an empty shell."
On the assumption that Im is the strong candidate, NewJeans believes that this is the only "card" that CEO Min can play. On the same day, CEO Min's side released a statement saying, "The request for the right to terminate the exclusive contract is a "N
"It was a request to resolve the unreasonable interference that arose during the debut process of 'NewJeans' and to operate the label independently," he said, distancing himself from any connection to the allegations of usurpation of management rights.
In response to this, CEO Park Ji-won stated at the first quarter management performance conference held on the same day that in relation to the conflict with CEO Min, "HYBE is a multi-label pioneer.
"Through the audit process, we have specifically confirmed the allegations of attempted usurpation of management rights and have taken the necessary measures.
"Even angry ARMYs have joined the fray. On the morning of the 3rd, BTS supporters gathered in front of the HYBE building in Yongsan-gu, Seoul.
A wreath sent by the group is being laid out for mourning. They pursued legal proceedings against HYBE's artist "BTS" for defamation.
"BTS" fan club "ARMY" made their position clear through a newspaper advertisement on the 3rd. On the same day, ARMY published a newspaper advertisement under the name "BTS Fan ARMY"
"We support BTS, not HYBE," they said. "BTS, who has nothing to do with the current situation, is suffering a lot of damage from false news and rumors, but we are grateful to the management of the group.
"We denounce HYBE for standing by and watching as an agency," and "HYBE's Chairman Bang Si Hyuk and CEO Park Ji Won have been using BTS as a shield to criticize the management office's negative domestic and international issues.
"A management agency that does not protect its artists has no reason to exist. Failure to fulfill the management agency's obligations could lead to the termination of the contract."
On the same day, ARMY also sent dozens of condolence wreaths and a demonstration truck to the HYBE building in Yongsan-gu, Seoul, and filed legal proceedings against HYBE artist "BTS" for defamation.
ARMY is in a situation where "BTS", which has nothing to do with the current situation, is suffering a lot of damage from fake news and rumors, and HYBE's BIGHIT
They stated that MUSIC was watching from the sidelines as the management office, and strongly demanded that they take a responsible stance to resolve the situation and take legal action.
