Li Xiuman ready to sue SM Entertainment Violation of commercial law.
SM Entertainment founder Lee Soo-man is reportedly seeking to sue the agency because recent partnerships and KakaoEntertainment. Legal representative of Lee Soo Man Wow Issued a statement on the matter, saying that the label and Kakao conducted illegal acts in order to make Kakao the second largest shareholder of SM Entertainment.
Huayu said, “In January, SM Entertainment’s co-CEOs Lee Sung-soo and Joo Young-joon agreed to a proposal from Align Partners without consulting the company’s largest shareholder, Lee Soo-man. The move further heightened tensions and management disputes between the two parties. SM Entertainment’s board of directors led by the largest shareholder, Li Xiuman, and the co-CEO issued new shares and convertible bonds to a third party under controversial circumstances, which clearly violated the commercial law and related legal provisions. There is a dispute with the company.”
The law firm continued, “SM Entertainment’s board of directors unilaterally allotted new shares and convertible bonds to third party Kakao in order to expand their reach and make things work in their favor as they attempt to secure a competitive advantage in the direction of the company. As the law firm acts as the largest shareholder , we will stop SM Entertainment’s board of directors’ attempts to issue new shares and convertible bonds with an injunction, and we will hold directors civil and criminally accountable.”
In related news, reports revealed that there were dispute Inside SM Entertainment after Lee Soo Man’s production contract expired.