HYBE announced today (16/02) the submission of an official shareholder proposal to SM Entertainment to "establish a more transparent governance structure that will maximize shareholder value," according to a press release.

The proposal is said to include amending some existing policies and creating new ones that aim to prevent any possible conflicts of interest between the two parties. The amendments include ensuring that SM's Chief Executive Officer is not the same person as the Chairperson of the Board, diversifying and having a gender-balanced Board, and making certain that board members actively participate in Board meetings and fulfill their given responsibilities.

HYBE also suggested establishing a committee for the recommendation of independent Director candidates, a compensation committee, and a governance committee, prohibiting individuals convicted of breach of trust or embezzlement from being appointed as Board members, having a Compliance Officer system, and introducing an electronic voting system for minority shareholders to exercise their shareholder rights. 

The global agency has also endorsed its candidates for board candidacy. They are Jason Lee (President, HYBE America), Jinsoo Jung (Chief Legal Officer, HYBE) and Jin Hwa Lee (Financial Planning & Analysis Department Leader, HYBE) for the internal Board of Directors; and Namkyu Kang (Head Attorney and Managing Partner, GAON LAW GROUP), Sounman Hong (Professor of the Department of Public Policy, Yonsei University), and Dae Woong Lim (Korea Representative, UN Environment Programme Finance (UNEP) Initiative) for the external Board of Directors. HYBE announced that they "did not put forth a candidate from a creative sector as a means to respect and further nurture SM’s unique creativity and expertise." 

The said proposal was submitted through SM's founder and former Chief Producer Lee Soo-Man from whom HYBE acquired shares recently.

HYBE is home to an array of music labels, including BIGHIT MUSIC, PLEDIS Entertainment, HYBE Japan, SOURCE Music, BELIFT LAB, and ADOR. It also most recently acquired US-based hip-hop label QC Media Holdings as part of HYBE America.