HYBE Labels SM Entertainment’s Current Management As “Untrustworthy” And Requests Voting Rights From Minority Shareholders Ahead Of General Meeting
HYBE publicly requested SM Entertainment‘s minority shareholders to give them their voting rights.
On February 24, HYBE asked that it is appointed the voting rights of minority shareholders ahead of SM Entertainment’s general meeting next month.
At stake at the upcoming meeting are amending the company’s Articles Of Incorporation so that it reflects the standards and recommendations of Korea ESG, as well as auditors and directors for new management.
HYBE, who recently became SM Entertainment’s largest shareholders, hinted that they would be replacing SM Entertainment’s current management.
SM Entertainment is a pioneer of Korean Entertainment that has led the Hallyu Wave and is now at the precipice of rivaling the world’s three major music labels. To accomplish this, it is paramount that it realizes an exemplary governance structure with executives who are professional, independent, and have integrity.
HYBE further stated that Lee Soo Man’s Like Planning fiasco is proof that the current management is untrustworthy. Previously it was revealed that Lee Soo Man was accepting a large royalty fee through his consulting company, Like Planning.
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HYBE reportedly also recommended that SM Entertainment delegate its own voting rights to HYBE’s recommended board of directors rather than its current board of directors stating that “There have been questions raised about legality and compliance in the process of issuing new shares and convertible bonds.”
HYBE’s recommended board of directors includes HYBE America COO Lee Jae Sang, HYBE’s CLO Jung Jin Soo, and HYBE’s Head Of Management Planning, Lee Jin Hwa.