10/29/2024

Min Hee-jin's Petition for Reappointment as CEO Dismissed

Min Hee-jin's Petition for Reappointment as CEO Dismissed...
"Inappropriate Filing"

On October 29, the Seoul Central District Court dismissed former ADOR (All Doors One Room) CEO Min Hee-jin's petition seeking reinstatement, which she had filed against HYBE.

The court found that her request did not meet the necessary legal requirements.

Chief Judge Kim Sang-hoon of Civil Agreement Division 50 ruled that despite a shareholder agreement guaranteeing a five-year CEO term,
"even if the injunction were granted, directors are under no legal obligation to enforce it, rendering the petition irrelevant."

The court explained in its decision that
"directors are expected to independently assess and make decisions in line with the duty of care and fiduciary duty under commercial and civil law," adding that "they are not legally bound to follow HYBE’s instructions."

Additionally, the court found it challenging to interpret the validity of the "procure" clause—a term requiring shareholders to direct voting decisions—as it potentially conflicts with foundational principles of commercial law.

Min Hee-jin's Petition for Reappointment as CEO Dismissed

This decision is likely to further reduce Min’s influence within ADOR.

With the court stating, "It is difficult to find grounds for a claim enforcing the contractual terms," similar petitions are expected to face challenges in the future.

HYBE expressed gratitude for the court's "wise judgment" and added, "We will focus on ADOR’s stabilization, advancing the multi-label structure, and supporting artist activities."

In contrast, Min’s team stated, "The dismissal is not about the validity of the shareholder agreement itself but a legal interpretation of the 'procure' clause’s enforceability.

The CEO term should be guaranteed under the shareholder agreement until November 1, 2026."

This dispute began on August 27 when ADOR's board of directors decided to dismiss Min, citing the need to separate creative and managerial roles for the label’s benefit and alignment with the multi-label approach.

HYBE's Chief Human Resources Officer Kim Joo-young was appointed as the new CEO.

Legal experts view this ruling as a pivotal moment in the dispute between HYBE and Min.

One lawyer commented, "The decision imposes substantial constraints on Min’s legal options, and further disputes will likely proceed to formal litigation."

Entertainment industry insiders predict that this case could spark new discussions on governance and management within the K-pop sector, particularly around strengthening the framework for multi-label operations within major entertainment firms.

Attention now turns to how HYBE and ADOR will redefine their relationship following this ruling and the potential impacts this will have on the K-pop industry.

Latest

Subscribe to Updates
Receive exclusive content and promotions straight to your inbox.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Other Posts

ADOR Releases Statement Supporting Hanni After Controversial "Ignore Her" Remark
Shifts to a Hardline Stance Following Notice of Contract Breach, Heightening Tensions Over NewJeans’ Contract Termination
11/27/24
Music
Jannabi Faces Controversy Over Collaboration with Former Member Yoo Young-hyun Amid School Violence Scandal; Agency Apologizes
Announcement on Fan Café Sparks Backlash; Agency Denies Yoo’s Involvement in Music Production but Fans Remain Outraged
11/26/24
Celeb
BTS’s Jimin Wins Grand Prize ‘Fans’ Choice of the Year’ at MAMA Awards, First Solo Winner in a Decade
Achieves 4 Billion Streams as the First K-pop Soloist During Military Service, Extending BTS’s Award Dominance
11/26/24
Celeb
Rosé Releases New Single ‘Number One Girl’ with Bruno Mars as Producer
Track from Upcoming First Full-Length Album Rosie Pre-Released; First Performance of ‘APT.’ with Bruno Mars Confirmed for MAMA AWARDS
11/22/24
Music
Rookie Girl Group ILLIT Wins 'Best New Female Artist' at MAMA 2024, Ushering in a New Era for K-pop
‘2024 MAMA Awards’ Held in Dual Venues in LA and Osaka, Hosted by Park Bo-gum, Proves K-pop’s Global Influence
11/22/24
Music
Former ADOR CEO Min Hee-jin Faces ₩500 Million Legal Battle with Source Music
Simultaneous lawsuits with Belift Lab and Source Music to commence in January, escalating into one of K-pop's largest legal disputes
11/21/24
Music
BTS’ Jin Premieres ‘Running Wild’ on The Tonight Show Starring Jimmy Fallon
Appears on NBC’s Iconic Talk Show to Introduce New Album; Special Fan Event ‘Merry Run Around’ Scheduled in Seoul on the 24th
11/21/24
Music
Bruno Mars and BLACKPINK’s Rosé to Debut 'APT.' Live at MAMA
Performing at Osaka’s Kyocera Dome on the 22nd, Featuring Their First Live Rendition of the Billboard-Charting Hit
11/21/24
Music