Lee Soo’s legal representative, Hwawoo Law Firm, released a statement on February 7 outlining his stance on suing SM Entertainment for violating business rules. SM Entertainment recently signed a partnership agreement with Kakao Entertainment, and it was later discovered that the two labels had taken illegal steps to make Kakao the second largest shareholder of SM, accounting for 9, 05% of their shares.
This was done without the knowledge of Lee Soo-man, the founder and main shareholder of the company. Co-CEOs, Lee Sung-soo and Tak Young-joon, accepted the deal from Align Partners, SM’s second-largest investor after Lee Soo-man. According to Hwawoo,
“Last year, Align Partners made a series of proposals to appoint auditors for SM Entertainment’s regular shareholder meetings, and since then, there have been many disputes over management rights over Lee Soo-man. , such as requesting bookkeeping and board access. meeting notes.”
It was previously revealed that there was a management disagreement between Soo-man and Align Partners (a shareholder activist fund). Under such conditions, the issuance of new shares and convertible bonds is considered prohibited. This leads to various downsides, reducing the stock value and giving less control over the company to the current owners, making the man with Soo’s views justified in his position. he.
Netizens reacted to the man Lee Soo’s decision to sue SM Entertainment, the company he founded.
Hwawoo’s comment clearly explains the events that led to Soo’s point of view. It says,
On January 20 of this year, SM Entertainment co-CEOs Lee Sung-soo and Tak Young-joon agreed to Align Partners’ proposal without consulting the company’s largest shareholder, Lee Soo-man.”
It continues,
“It is illegal for the board of directors of SM Entertainment, chaired by co-CEOs, to issue new shares and convertible bonds to a third party during a period of internal conflict.”
SM unilaterally donated new shares and convertible bonds to Kakao for seemingly illegal reasons.
“(They joined with Kakao) to broaden their reach and make it easier for them, while they seek to gain a competitive advantage in controlling the direction of the company.”
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Lee Soo-man plans to sue SM Entertainment and pursue legal action against the corporation and its employees after discovering the company’s illegal behavior.
“We will use the ban to prevent SM Entertainment’s board of directors from issuing more shares and convertible bonds, and we will hold the directors civil and criminally responsible for this.”
Many were shocked to learn that the corporation was going against its own founder when the news broke. Although it was later proven that such practices were typical in the corporate world, netizens still praised Lee Soo-man for taking a brave stance and being willing to solve the problem one by one. openly and legally.
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Fans and netizens in general have overwhelmingly supported him as they grasp the broader implications of the situation. Men who follow the Soo approach must protect not only their distribution of shares, but also the distribution of shares to other shareholders. This includes SM Entertainment musicians as well as album sales and their comebacks. Fans were relieved to see that Lee Soo-man quickly fixed the issue by taking appropriate action against it, which protected many individuals within the company. Naturally, they hoped that the situation would be handled and their cooperation with Kakao would become null and void.
According to JTBC, Lee Soo-man is in the US and rushed back to Korea on February 7 https://t.co/YkrGJW3SpF
– TMIKpop (@tmikpop) February 8, 2023
Another comment on a post said
“I heard the reason SM stock is undervalued is because Lee soo-man was greedy and lost a lot hahaha. It is human greed” https://t.co/18hq9XQ056
— cow (@HlGHNOVA) February 7, 2023
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Let the article source Lee Soo-man Sues SM Entertainment For Violating Agency Rules of website nyse.edu.vn
Categories: Biography