Min Hee Jin of ADOR has issued an official statement regarding HYBE's latest decision to remove her from her position as CEO.
On August 29 KST, a legal representative relayed on behalf of Min Hee Jin,
"Hello.
Min Hee Jin has received numerous inquiries about her response to HYBE's recent announcements, including the termination of the shareholder agreement and a subsequent lawsuit requesting the court to verify the contract termination. Therefore, this statement will be substituted as a response to all of the inquiries.
A contract cannot be unilaterally terminated by either party unless there is mutual agreement or a breach of contract by the other party. Only after a breach occurs can one party seize the right to terminate, and the contract is terminated once a termination notice is sent to the other party (Civil Code Articles 543, 544). Even if a contract is terminated, the benefits that could have been obtained from it can still be claimed as damages (Civil Code Article 551).
In other words, contracts must be honored, and no contract is terminated simply by one party declaring its termination.
CEO Min Hee Jin has never breached any part of the shareholder agreement, as confirmed by the court's provisional injunction decision.
Therefore, HYBE does not have the right to terminate the shareholder agreement, and HYBE's unilateral notice of termination is without effect.
The fact that HYBE filed a lawsuit to verify the contract's termination does not suddenly grant it any previously non-existent right to terminate it.
Thus, the shareholder agreement remains in effect, including CEO Min Hee Jin's put option rights.
In fact, by having ADOR's board dismiss Min Hee Jin from her position as CEO, HYBE is the party that has breached the shareholder agreement. Consequently, Min Hee Jin is currently in a position where she may exercise the right to terminate the agreement.
Min Hee Jin has not yet exercised this right but is seriously considering the matter."
Previously on August 27 KST, ADOR announced that Min Hee Jin had stepped down as CEO, and that a new CEO, Ju Young Kim had been appointed during a board meeting of executive directors. In response, Min Hee Jin's side claimed that the proceedings were not mutually agreed upon, suggesting her intentions to retaliate through legal measures.
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