1. On August 18, 2017, the Defendant confirms that a resolution made by a member of the Plaintiff at an extraordinary general meeting is null and void.

2...

1. Basic facts

A. The Defendant is a cooperative established for the purpose of counseling and training for the promotion of agricultural production and the improvement of management ability. The Plaintiff is a member of the Defendant, who was appointed as an auditor on November 1, 2016.

B. On August 18, 2017, the Defendant held an extraordinary general meeting (hereinafter “instant extraordinary meeting”) and resolved to dismiss the Plaintiff from the Defendant’s members (hereinafter “instant resolution on expulsion”). The grounds for the disciplinary action are as follows: “Where the Plaintiff committed an act prohibited by the articles of incorporation,” which is the reason for expulsion under Article 30(1)3 of the Agricultural Cooperatives Act and Article 12(3)3 of the Articles of incorporation of the Defendant, “where the Plaintiff committed an act prohibited by the articles of incorporation (i.e., loss to the Defendant or loss of the Defendant’s credit by intention or gross negligence).”

(1) The audit records shall be prepared every time the audit and inspection was made, but the audit and inspection records shall not be submitted any one time even though the Act has been stipulated to be prepared. (2) The local newspapers shall post a false head office at the local newspapers. (3) The statement of opinions shall be indicated without any ground in the audit opinions of the settlement of accounts in 2016.

C. In addition, around August 21, 2017, the Plaintiff received a notice from the Defendant that the Plaintiff was dismissed from office as of August 18, 2017 as a member of the first extraordinary general meeting of August 18, 2017, on the ground that the amount of using economic business from August 18, 2016 to August 17, 2017 falls short of five million won, which is the standard for the actual use of the business, and that the amount of using the economic business falls short of five million won, from August 18, 2016 to August 17, 2017.

The relevant provisions of the Agricultural Cooperatives Act and the Articles of Incorporation (the provisions that were in force on August 18, 2017) are as follows:

Article 30 (Expulsion) (1) A local agricultural cooperative member may be expelled through a resolution of a general meeting if he/she falls under any of the following subparagraphs: