Earlier this year, Min Hee-jin requested the right to terminate NewJeans’ exclusive contract on her own “HYBE rejected”
It was reported that ADOR CEO Min Hee-jin, who is in conflict with HYBE, requested the "right to terminate NewJeans' exclusive contract on her own" without going through ADOR's board of directors earlier this year
According to related industries on May 2nd, CEO Min‘s legal firm sent a shareholder agreement amendment to HYBE in February this year containing this provision. This comes after both sides engaged in a tug-of-war regarding “put-back option multiple of 30 times” and “application of put-back option for additional 5% stake” at the end of last year.
HYBE is reported to have rejected this proposal, considering it unreasonable.
Typically, major entertainment companies require board approval for exclusive contracts.
If CEO Min’s side’s demand for CEO Min to have the right to terminate the exclusive contract is granted, HYBE would have no way to prevent the departure of its affiliated singer (NewJeans).
Currently, ADOR’s board consists of three members, including CEO Min herself, her close associates Vice-CEO Shin and Director Kim, who all have voting rights, so CEO Min is in effect in control.
However, under the current structure, when such movements are detected, HYBE, which holds 80% of ADOR’s shares, can convene an extraordinary general meeting and replace ADOR’s board to prevent the departure of its affiliated singers.
