War Continues in Lotte Family
Shin Dong-joo, former vice chairman of Lotte Holdings who was virtually defeated in a management right dispute with his younger brother Shin Dong-bin, chairman of the Lotte Group, is attempting to recover his management right once again.
Shin Dong-joo has recently submitted a shareholder proposal demanding that Lotte Holdings appoint him as a director and remove chairman Shin Dong-bin and president Takayuki Tsukuda from the board of directors at the general shareholders' meeting slated for June.
Chairman Shin Dong-bin voluntarily stepped down as CEO of Lotte Holdings after having been sentenced to prison and put behind bars. But he is maintaining his position as a director.
Shin Dong-joo demanded that his younger brother quit as a director, claiming that he pushed Lotte Group into trouble and undermined society’s trust in the group by committing a series of illegal acts.
Shin Dong-bin defeated Shin Dong-joo by winning support from the Japanese management and shareholders in all of the four voting contests held in August 2015, March 2016, June 2016, and June 2017.
Industry experts predict that it is highly likely that Shin Dong-joo will not succeed this time again as the Japanese management still shows strong support for Shin Dong-bin.
In the meantime, Shin Dong-joo lost a lawsuit filed with the Japanese court. In the suit, he claimed that his dismissal from the boards of directors of Lotte, Lotte International, Lotte Corporation and Lotte Real Estate in Korea was unfair.
- Will Lotte Group’s Korean, Japanese Units Take Own Line?
- Family Feud over Control of Lotte Group Reignited with Jailing of Chairman Shin
- Lotte Group Chairman Shin Dong-bin Jailed for Bribery
- Absence of Chairman Hobbling Lotte Group’s Overseas Projects
- Lotte Brothers to Hold Another Round of Proxy Contest