The judgment below

The part against the defendant is reversed, and this part of the case is remanded to the Seoul Western District Court Panel Division.

The grounds of appeal are examined.

1. Article 24(3)5 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter “Urban Improvement Act”) provides for “a contract that shall become a partner, other than the matters stipulated in the budget, shall be subject to the resolution of the general meeting.” Article 85 subparag. 5 of the same Act provides that an “executive of a union that promotes any of the projects under the subparagraphs of Article 24 (3) without going through the resolution of the general meeting

However, the prior meaning of “budget” refers to a “plan established by the State or an organization in advance by means of revenue and expenditure for a fiscal year.” Meanwhile, the accounts of a union and the timing for convening a general meeting should be included in the articles of association pursuant to Article 20(1) of the Act on Urban Improvement.

Therefore, “budget” under Article 24(3)5 of the Act refers to “budget of revenues and expenditure for one fiscal year prescribed by the articles of association of a cooperative” (see Constitutional Court en banc Order 2012Hun-Ba390, 2014Hun-Ba155, May 29, 2014). Therefore, insofar as a cooperative does not meet such budget requirement, insofar as the amount of expenditure for rearrangement project expenses, which are costs incurred in rearrangement project, such as construction expenses, in the course of promoting a rearrangement project, is less than the amount determined by a general meeting’s resolution under the name of “budget of project expenses” under Article 24(3)5 of the Act, it cannot be deemed as “budget” under Article 24(3)5 of

2. Of the facts charged in the instant case, the summary of the violation of the Act on the Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter “the instant association”) is that the Defendant, the president of the E redevelopment association (hereinafter “instant association”), holds a temporary board of directors around March 28, 201 and selects six service companies as shown in the attached Table of the lower judgment, such as the establishment of an urban renewal acceleration plan and the provision of services, etc.; and the instant association without undergoing a resolution at the general meeting of its members on May 7, 2011, prior to the general meeting of its members on March 7, 2011.