There’s a lot of confusion about the board meeting, general...
TMIKpop@tmikpop
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Nov 15, 2025
~2 min read
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There’s a lot of confusion about the board meeting, general meeting, lawsuits, and so forth so I will try to explain.
Each corporation has a board of directors and an executive director also known as a CEO. The board members meet regularly, sometimes it’s every quarter,
Each corporation has a board of directors and an executive director also known as a CEO. The board members meet regularly, sometimes it’s every quarter,
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sometimes it is every month. This is set forth in “articles of incorporation” which is just a document that says how a company should be run. A board meeting can be called at any time by members of the board and is attended by the members of the board
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A general meeting is a meeting of the shareholders, the people that own the company. In the case of a publicly traded company this is anyone who has bought shares on the stock exchange as well as the people who received shares prior to the company being “listed” on the exchange
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For example, BigHit was a private company before 2020 and then held an initial public offering (IPO) in October 2020 and was officially listed on the KOSPI, a Korean stock exchange, similar to the New York Stock Exchange.
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Ador is a private company and not listed. It is common for a big corporation to have subsidiaries that are private and it actually enhances existing shareholder value. An example would be Kakao owning Kakao Entertainment. Kakao Ent is currently a private company.
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The only shareholders in Ador is Hybe (80%), MHJ (18%) and her two directors (1% each). Any shareholder possessing 3% or more shares can call for what is known as an “Extraordinary General Meeting.” General meetings are different than board meetings because shareholders attend
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general meetings and only board members attend the board meetings. Every company has to hold an “Annual General Meeting.” This meeting usually takes place around the end of March which is close in time to the deadline companies have to report their earnings and income to
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the government departments who oversee the financials of its countries’ corporations. An “extraordinary general meeting” is a meeting that is not the annual meeting. There are very few restrictions on the right to ask for an EGM. Primarily it is holding 3% and then having
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the power to pass an agenda item. All meetings, whether it is a board meeting or a general meeting, have an agenda. This is a written document which sets out why the meeting is taking place and what the attendees will vote on.
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In the Ador case, the Ador auditor asked for a Board Meeting but MHJ and the rest of the members will not hold the board meeting. Hybe, holding 80% of Ador shares, is now asking the court to order Ador to hold an EGM. The hearing over this will take place on the 30 Apr in Korea.
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Hybe has the right to do this because it holds over 3% of the shares and at 80%, can pass every agenda item with a “super majority.”
