After a fierce “takeover battle” with, the regular shareholders’ meeting of SM Entertainment will be held today (March 31st).
The 28th SM regular shareholders’ meeting will be held on the second floor of Acro Seoul Forest D Tower, Seongdong-gu, Seoul at noon on March 31st.
Initially, this shareholders’ meeting was expected to be a confrontation between the next management candidates proposed by SM’s current management and HYBE. However, as HYBE gave up management rights and Kakao became SM’s largest shareholder through a tender offer, HYBE’s candidates were excluded. Accordingly, candidates proposed by SM’s current management and Kakao are expected to enter the shareholders’ meeting as internal and external directors.
The candidates for inside directors recommended by SM are SM’s Chief Financial Officer (CFO) Jang Chul Hyuk, SM’s Marketing Center Director Kim Ji Won, and SM’s Global Business Center Director Choi Jung Min.
A total of six candidates were selected as candidates for outside directors, including Kim Kyu Sik (chairman of the Korea Corporate Governance Forum), Kim Tae Hee (lawyer at Pyeongsan Law Firm), Moon Jung Bin (professor at Korea University Business School), Min Kyung Hwan (Blocore’s partner), lawyer Lee Seung Min (Peter & Kim’s partner) and Cho Sung Moon (Chartmetric’s CEO). In addition, Lee Chang Hwan (Align Partners’ CEO) and Jang Yoon Joong (vice president of global strategy at Kakao Entertainment) were recommended as candidates for non-executive directors.
Attention is also paid to whether former executive manager Lee Soo Man will attend the shareholders’ meeting. Earlier, Lee Soo Man sold 14.8% of his 18.45% stake in SM to HYBE for 120,000 won per share, thus becoming a minority shareholder with a 3.6% stake. Afterwards, HYBE participated in Kakao’s tender offer, but Lee Soo Man did not participate in the tender offer.
Instead, Lee Soo Man appointed lawyer Moon Jae Woong as the inspector of the shareholders’ meeting, in order to “investigate whether the proceedings and resolutions of the shareholders’ meeting are legally made“. As news spread that Lee Soo Man may attend the shareholders’ meeting, attention is focused on whether he will attend and what kind of message he will convey.
Meanwhile, starting with this shareholders’ meeting, SM plans to execute “SM 3.0”, which includes a change from Lee Soo Man’s existing producing system to a multi-producing system.
Source: nate
