In an exclusive report on May 2 KST, it was revealed that ADOR’s CEO, Min Hee Jin, had requested the authority to terminate the exclusive contracts of NewJeans members without any interference from ADOR shareholders and HYBE.
This request, proposed as an amendment to Min Hee Jin’s current shareholder’s contract with HYBE Labels, came about in February this year, following last year’s negotiations over ‘30-times the amount in put back options’ and ‘put back options for the newly issued 5%’.
Usually, decisions regarding the exclusive contracts of major artists are made during a shareholders’ meeting. In the past, artists like BTS and BLACKPINK confirmed their decisions to renew their exclusive contracts with statements like “The decision to renew the members’ exclusive contracts was passed during a board meeting,” and “The resolution to renew the group’s exclusive contract has been passed by the board.”
However, Min Hee Jin reportedly requested an amendment to her shareholder’s contract that would allow her to terminate the NewJeans’ members’ exclusive contracts with ADOR independently, without consulting the board members and without HYBE interference.
Currently, the shareholder’s board at ADOR is made up of Min Hee Jin, Vice President Shin, and Board Member Kim.
But as the largest shareholder of ADOR with 80% of shares, HYBE also has the rights to not only call a board meeting but also replace board members who disagree with its agenda.
It’s believed that Min Hee Jin’s request for such authority led HYBE to suspect that the ADOR CEO was planning an “exit” behind its back, leading to the rejection of the amendment proposal.
Source[1]
