Lee Soo-legal guy’s agent, Hwawoo Criminal Company, issued a observation on February 7 outlining his place on suing SM Leisure for violating trade laws. SM Leisure lately entered right into a collaboration word of honour with Kakao Leisure, and it used to be due to this fact discovered that the 2 labels took illegal steps to put together Kakao the second one greatest stakeholder of SM, accounting for 9.05% in their stocks.
This used to be executed with out the data of Lee Soo-man, the company’s founder and major shareholder. The co-CEOs, Lee Sung-soo and Tak Younger-joon, authorised the trade in from Align Companions, who used to be SM’s second-largest investor upcoming Lee Soo-man. In keeping with Hwawoo,
“Align Partners made a series of proposals last year to appoint an auditor for SM Entertainment’s regular shareholder meetings, and since then, there have been various disputes over the management rights asserted against Lee Soo-man, such as requesting access to accounting books and board meeting notes.”
It used to be prior to now disclosed that there used to be a managerial war of words between Soo-man and Align Companions (a shareholder activist capitaltreasury). Underneath such statuses, unutilized reserve and convertible bond problems are deemed prohibited. This leads to numerous drawbacks, declines in proportion worth, and no more keep watch over of the company for wave homeowners, making Soo-perspective guy’s affordable given his place.
Netizens reply to Lee Soo-decision guy’s to sue SM Leisure, the company he created.
Hwawoo’s remark obviously explains the occasions that resulted in Soo-viewpoint. guy’s It says,
“On January 20, this year, SM Entertainment’s co-CEOs Lee Sung-soo and Tak Young-joon agreed to Align Partners’ proposal without consulting the company’s biggest shareholder, Lee Soo-man.”
It is going on,
“It is plainly unlawful for SM Entertainment’s board of directors, which is chaired by the co-CEOs, to issue fresh shares and convertible bonds to third parties at a period of internal conflict.”
SM unilaterally awarded unused stocks and convertible bonds to Kakao for what gave the impression to be illegal causes.
“(They joined with Kakao) to broaden their reach and make things more favorable to them, and they sought to gain a competitive advantage in controlling the company’s direction.”
Lee Soo-man plans to sue SM Leisure and pursue authorized motion in opposition to the company and its staff upcoming finding the corporate’s illegal habits.
“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 accountable for this.”
Many nation have been stunned to search out that the company had grew to become in opposition to its personal founder when the inside track unpriviledged. Regardless that it used to be due to this fact confirmed that such practices are standard within the company international, netizens commend Lee Soo-man for adopting a brave be on one’s feet and being ready to deal with the topic publicly and legally.
Fanatics and netizens on the whole have overwhelmingly sponsored him as they grasped the wider implications of the condition. Soo-approach males are to assure no longer simply their very own proportion distribution, but additionally the distribution of stocks to alternative shareholders. This covers SM Leisure musicians in addition to the revenues from their albums and comebacks. Fanatics are relieved to peer that Lee Soo-man used to be swift to healing the condition by means of taking suitable motion in opposition to it, which safeguards many people underneath the company. Naturally, they hope that the condition is treated and that their collaboration with Kakao is rendered null and void.
In line with JTBC, Lee Soo-man has been staying in the USA and hurriedly returned to Korea at the 7 Feb
— TMIKpop (@tmikpop) February 8, 2023
some other touch upon a publish stated
“I heard that the reason SM stocks have been undervalued is because Lee soo-man took so much and made a lot of losses hahaha. The human greed itself”
— cow (@HlGHNOVA) February 7, 2023