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Min Hee-Jin's Provisional Disposition Granted and the Story Behind 1.
Joseph Hwang
The Court of the Republic of Korea granted Min’s request to retain her position as CEO of ADOR beyond HYBE’s counterclaims on May 30, 2024. The reason for granting Min’s request is that although her behavior was a betrayal against HYBE, it did not reach the crime of occupational breach of trust against ADOR. Thus, the court has ordered the restriction of the voting right to remove the director when the extraordinary shareholders meeting of ADOR is coming on May 31, 2024. Suppose HYBE violates this order of the court to keep the obligation to prohibit the voting right of removal of the director. In that case, the court’s decision has included that HYBE shall pay approximately USD 14.4 million (KRW 20 billion) to Min as compelling compliance.
However, the court’s decision does not mean that Min’s other ADOR directors are affected by this order. This decision only applies to Min, not her directors, who have no rights to retain their positions contracted with ADOR shareholders.
Therefore, on May 31, 2024, HYBE, as the largest shareholder of ADOR, removed Min’s directors and replaced its recommended three new directors in ADOR at the extraordinary shareholders’ meeting.
Min stands for obstacles to ADOR’s management rights. The new directors, represented by HYBE, the largest shareholder, will try to control and supervise the ADOR board of directors.
After all, HYBE’s stance should be on proving that Min’s betrayal, admitted by the court’s decision, illegally violated criminal law as an occupational breach of trust in a criminal lawsuit.
Well, this is just the beginning.
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