Lee Soo-legal’s male agent, Hwawoo Legal Firm, issued a statement on February 7 outlining his stance on suing SM Entertainment for violating business regulations. SM Entertainment recently signed a collaboration agreement with Kakao Entertainment, and it was later discovered that the two labels took 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 agency’s founder and major shareholder. The joint CEOs, Lee Sung-soo and Tak Young-joon, received the deal from Align Partners, which is SM’s second largest investor after Lee Soo-man. According to Hwawoo,
“Align Partners made a series of proposals last year to appoint auditors for SM Entertainment’s common shareholders meeting, and since then, there have been various disputes regarding management rights asserted against Lee Soo-man, such as requesting access to accounting books and the board of directors. meeting notes.”
It was previously revealed that there was a management dispute between Soo-man and Align Partners (a shareholder activist fund). Under such conditions, the issue of new shares and convertible bonds is considered prohibited. This resulted in various weaknesses, a decline in stock value, and less control of the firm for the current owners, making Soo-perspective man’s reasonable given his position.
Netizens reacted to Lee Soo’s decision to sue SM Entertainment, the firm he created.
Hwawoo’s comment clearly explains the events that lead to Soo’s point of view. man He said,
“On January 20 this year, SM Entertainment’s co-CEOs Lee Sung-soo and Tak Young-joon agreed to coordinate the Partners’ proposal without consulting the company’s largest shareholder, Lee Soo-man.”
It continues,
“It is clearly illegal for SM Entertainment’s board of directors, chaired by the co-CEO, to issue new shares and convertible bonds to third parties during a period of internal conflict.”
SM unilaterally awarded new shares and convertible bonds to Kakao for apparently illegal reasons.
“(They joined Kakao) to expand their reach and make things more profitable for them, and they strive to gain a competitive advantage in controlling the direction of the company.”
Lee Soo-man plans to sue SM Entertainment and pursue legal action against the corporation and its employees after discovering the company’s illegal conduct.
“We will use an injunction to prevent SM Entertainment’s board of directors from issuing additional shares and convertible bonds, and we will hold the directors civilly and criminally liable for this.”
Many people were shocked to find that the corporation had turned against its own founder when the news broke. Although it was later proven that such practices are typical in the corporate world, netizens praised Lee Soo-man for taking a brave stand and being willing to deal with the matter openly and legally.
Fans and netizens are generally very supportive because they understand the wider implications of the situation. Soo men’s approach is to protect not only their own share distribution, but also the distribution of shares to other shareholders. This covers SM Entertainment musicians as well as the proceeds from their albums and comebacks. Fans are relieved to see Lee Soo-man act quickly to solve the problem by taking appropriate action against him, which protects many individuals under the firm. Naturally, they hope the situation can be handled and their collaboration with Kakao is cancelled.
According to JTBC, Lee Soo-man has been staying in the US and hastily returned to Korea on Feb 7 https://t.co/YkrGJW3SpF
— TMIKpop (@tmikpop) February 8, 2023
another comment on the post said
“I heard that the reason SM shares are undervalued is because Lee Soo-man took so much and made a lot of losses hahaha. Human greed itself” https://t.co/18hq9XQ056
— cow ? (@HlGHNOVA) February 7, 2023
Categories: Biography
Source: SCHOOL TRANG DAI
