HYBE, after auditing its subsidiary ADOR, began to use its shareholder power. They called for a meeting of ADOR’s shareholders and asked the CEO, Min Hee Jin, to step down.
This all happened after HYBR had audited ADOR previously and noticed they were trying to break away from the parent company. HYBE confirmed the situation and acted quickly to prevent any takeover attempt.
On April 22, the industry buzz was that HYBE asked the ADOR board to gather for a shareholders’ meeting. They want to make the current management answer for trying to take control and also bring in some new directors from HYBE.
ADOR, created by CEO Min Hee Jin in 2021, is a label under HYBE, managing NewJeans. HYBE owns 80% of ADOR, and the remaining 20% is in the hands of top executives, including CEO Min Heejin.
It’s uncertain if ADOR will hold the shareholders’ meeting as requested by HYBE. The decision to hold this meeting lies with the ADOR board, as CEO Min Heejin has a strong influence on it.
Currently, besides CEO Min, ADOR’s two executive directors are all considered close associates of her from her time at SM Entertainment.
If the ADOR board doesn’t play ball with HYBE, there’s no direct way to force them. In this scenario, it’s very probable that HYBE might go the legal route, asking for a court order to push for a shareholders’ meeting. If the court greenlights the meeting, it could pave the way for HYBE’s nominated directors to join ADOR’s board.
HYBE also sent a letter asking CEO Min Hee Jin to step down. As per reports CEO Min, who’s calling the shots on the board, is likely to turn down the resignation.
NewJeans, a girl group nurtured by Hee Jin, made their debut in 2022 and dropped hit tracks like Hype Boy, Attention, Ditto, OMG, and Super Shy.