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1. All appeals by the Defendants are dismissed.
2. The costs of appeal are assessed against the Defendants.
Purport of claim and appeal
1.
Reasons
1. The reasoning of the court's explanation concerning this case is as stated in the reasoning of the judgment of the court of first instance, except for adding the following judgments, thereby citing it as it is in accordance with the main sentence of Article 420 of the Civil Procedure Act.
2. Additional determination
A. The gist of the Plaintiff’s additional assertion is the cause of the instant claim. The Defendants neglected to perform their duties due to C’s director, auditor, or gross negligence, thereby causing damages to the Plaintiff. As such, Article 401 of the Commercial Act (Liability to Third Parties) (1) of the Commercial Act Article 401 (Liability to Third Parties) (1) of the Commercial Act is jointly and severally liable for damages to third parties if a director neglected to perform his duties by intention
(2) Article 399 (2) and (3) shall apply mutatis mutandis in case of paragraph (1).
Article 414 and Article 414 of the Commercial Act (Liability of Auditor) (1) If an auditor has neglected to perform his/her duties, he/she shall be jointly and severally liable for damages to the company.
(2) If an auditor has neglected his/her duties wilfully or by gross negligence, he/she shall be jointly and severally liable for damages to a third party.
(3) In case where auditors are liable for damages either to the company or to a third person, if directors are likewise liable therefor, the auditors and the directors shall be jointly and severally liable for the damages.
Based on this claim, the director or auditor of a corporation is responsible for compensating the plaintiff for damages.
B. Where an auditor of a stock company 1, without any intention to perform his duties as an auditor, only lends his name to a director in a manner such as leaving his seal to the director without any interference or supervision of the director, entered false facts in the financial statements, etc., and impliedly or neglected to cause damage to a third party who is the other party to the transaction using such detailed financial statements, etc.