Actor Lee Jung-jae, the majority shareholder of the software development company Artist United, has entered into a legal dispute with Kim Dong-rae, the CEO of the drama production company RaemongRaein, which was acquired by Artist United earlier this year.
 
Attorney Hyun-Soo Do of LIN, representing Artist United, announced in a press release on the 5th that "Artist United and its investors have filed a lawsuit for damages against CEO Dong-Rae Kim of RaemongRaein and have filed for a court permit to convene a temporary shareholders meeting to appoint directors of RaemongRaein.
 
Law Firm LIN stated, "Following the acquisition of RaemongRaein through a capital increase in March this year, it was discussed that internal directors, actors Jung-Jae Lee and Jung Woo-sung, would participate in the management of RaemongRaein. However, CEO Kim has not complied with the investors' demands, ignoring  the legitimate request of investors to hold an extraordinary general meeting of shareholders. This has obstructed their participation in management, prompting this lawsuit to protect shareholder interests."
 
According to the Aju Institute of Corporate Management, from April last year to mid-February this year, there were 180 lawsuits concerning control disputes at major companies, a 22% increase from the previous year. While the targets of disputes have diversified from conflicts with minority shareholders to private equity funds and industry competitors, shareholder activism through corporate valuation programs, inheritance and succession issues following the death of a major shareholder, and other factors have made control disputes one of the most challenging risks for companies to address.
 
LIN's Management Rights Disputes Team provides professional and systematic legal services through a team of experts who have extensive experience in various advisory and litigation matters related to Management Rights Disputes, including hostile M&A and related disputes, disputes related to shareholder meetings and board resolutions, minority shareholders' exercise of shareholder rights and related disputes, disputes related to PEF investments, and advisory work related to shareholder meetings and board operations. If you require assistance, please contact our Management Rights Disputes Team (Tel. +82-2-3477-8695).
 
For more details, please refer to the original articles below.
 
Yonhap News & NoCut News
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