Just few days before, when SM Entertainment’s general meeting is going to held next month. Hybe Insights requested SM Entertainment’s minority shareholders, ‘Publicly’ to give them their voting rights.
[The upcoming meeting is arranged to amend the company’s Articles Of Incorporation so that it reflects the standards and recommendations of Korea ESG, as well as auditors and directors for new management.]
By doing this Hybe has already hinted towards replacing the current management of SM Entertainment. Recently Hybe is the largest shareholder of SM Entertainment.
“SM Entertainment is a pioneer of Korean Entertainment that has led the Hallyu Wave and is now at the precipice of rivaling the world’s three major music labels. To accomplish this, it is paramount that it realizes an exemplary governance structure with executives who are professional, independent, and have integrity.” — HYBE
Hybe also stated that accepting royalty fee through his consulting company Like Planning by Lee Soo Man is not trustworthy.
As per reports HYBE also recommended that SM Entertainment delegate its own voting rights to HYBE’s recommended board of directors rather than its current board of directors, as their statement states that “There have been questions raised about legality and compliance in the process of issuing new shares and convertible bonds.”
[HYBE’s recommended board of directors includes HYBE America COO Lee Jae Sang, HYBE’s CLO Jung Jin Soo, and HYBE’s Head Of Management Planning, Lee Jin Hwa.]