[1] The method of imposing a fine for negligence due to neglect of registration where the competent registry office of the head and branch offices of a company is not the same

[2] Persons subject to administrative fines due to the neglect of registration of the company and the scope of administrative fines where the status of the representative is lost during the registration period

[1] When there is a change in registered matters of a company, registration of change shall be made within two weeks at the place of the principal office and within three weeks at the place of each branch office (Article 183 of the Commercial Act). If the registry office at the place of the principal office and branch office are not the same, registration shall also be applied, respectively. Thus, an administrative fine due to the neglect of registration is also imposed depending on the neglect of registration at the

[2] The registration of a company, except as otherwise provided in the statutes, bears the duty of application by its representative (Article 17 of the Commercial Registration Act). If a company neglects its registration, the representative of the company shall be subject to an administrative fine at the time of its failure to register, and if a company loses its status while its failure to register continues, the company shall be subject to an administrative fine for negligence only for

[1] Article 183 of the Commercial Act / [2] Article 17 of the Commercial Registration Act

Re-appellant

Suwon District Court Order 2008Ra375 dated January 7, 2009

The order of the court below is reversed, and the case is remanded to Suwon District Court Panel Division.

1. Judgment on the grounds of reappeal

If the registered matters of a company are changed, registration of change shall be made within two weeks at the place of the principal office and within three weeks at the place of each branch office (Article 183 of the Commercial Act), and if the registry office at the place of the principal office and branch office are not the same, registration shall also be applied, respectively. As such, administrative fines due to neglect of registration are imposed depending on the neglect of registration at the place of the principal office

According to the records, the re-appellant was appointed as the representative director of the company of this case on March 7, 2001 and completed registration of change within two weeks at the place of the principal office of the company of this case and did not register the change within three weeks at the place of the branch office of the company of this case. Thus, the order of the court below which maintained the first instance court's decision that imposed the fine for negligence of this case on the ground of such neglect of registration is just and there

2. Ex officio determination

Except as otherwise provided in Acts and subordinate statutes, registration of a company shall be subject to an application by its representative (Article 17 of the Commercial Registration Act). If a company neglects its registration, the representative of the company shall be subject to an administrative fine at the time of failure to register, and if the representative loses his status while the registration period remains in force, it shall be subject to an administrative fine only for the period of neglect of

The court below affirmed the first instance court that imposed a fine for negligence on the re-appellant, after recognizing that the re-appellant neglected its registration for about 5 years and 10 months by applying for registration of middle-standing in February 2, 2007, even though he/she was reappointed as the representative director of the company of this case on March 7, 2001.

However, in light of the above legal principles and records, the re-appellant was reappointed as the representative director of the company of this case on March 7, 2001, and resigned from the representative director of the company of this case on August 19, 2002, and on December 17, 2001, Nonparty 1 was appointed as the representative director of the company of this case after Non-party 2 and Non-party 3 was appointed as the representative director of the company of this case on December 17, 2001. Thus, the period of neglect of registration as the representative of the company of this case is about 1 year and 4 months and 23 days. Thus, the order of the court below that determined the amount of a fine for negligence by mistake that the period of neglect of registration of the re-appellant reached about 5 years and 10 months on October 5, 200, is unlawful as it unfairly abused

3. Conclusion

Therefore, the order of the court below is reversed, and the case is remanded to the court below for a new trial and determination. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Cha Han-sung (Presiding Justice)