On March 31, 2022, at the annual general meeting of SM Entertainment, the auditor nominee proposed by minority shareholder Align Partners was successfully appointed. EJE LAW provided comprehensive legal advice and representation to the minority shareholder throughout the entire process, including the submission of the shareholder proposal, request for access and copies of the beneficial shareholder registry, solicitation of proxy voting rights, appointment of an inspector for the shareholders’ meeting, and vote counting at the meeting.

This auditor appointment represents a landmark case in which a candidate nominated by minority shareholders was appointed as a full-time statutory auditor of a listed company through the shareholder proposal process and the application of the 3% rule. The case is expected to serve as an important precedent for enhancing corporate governance transparency, protecting minority shareholder rights, and advancing the capital markets in Korea.

■ Related Article: https://biz.chosun.com/industry/company/2022/03/31/GDXG45O5EJB5RF22V6J26FOD7I/