Lee Soo Man is reportedly taking legal action against SM Entertainment for illegal practices. Certain claims and plans have been disclosed, earning netizens' attention.
Here's what happened.
Lee Soo Man To Sue SM Entertainment For Unauthorized Deal With Kakao
On January 7, it was revealed that Lee Soo Man, SM's Entertainment's founder and its largest shareholder, will file legal action against the company.
It also confirmed the attempts of issuing new shares and convertible bonds will be prevented, as well as sue the board of directors for these actions.
"As reported around in the media, a management dispute between SM Entertainment's founder Lee Soo Man and Align Partners."
"SM's co-CEOs Lee Sung Soo and Tak Young Joon agreed to Align Partners' Proposal without consulting Lee Soo Man, the company's largest shareholder, which led to several management disputes."
"The co-CEOs attempt to issue new shares and convertible bonds to a third party, amid management dispute, is a violation of Commercial Law, as well as the Articles of Association."
"As the agent of the largest shareholder, the firm will block the board of directors' efforts through an injunction. We will hold legal liabilities, both civilly and criminally."
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