1. The instant lawsuit shall be dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Plaintiff’s assertion

Plaintiff

The Secretary-General of the Council-Friendly Council embezzleds KRW 538,537,268 of the funds of the Plaintiff-Friendly Council in office.

Defendant B is the vice-chairperson in charge of finance, Defendant C, and D are those who have served as the auditor of the Plaintiff’s sub-council. The vice-chairperson is obligated to faithfully manage and operate matters concerning business and finance and to instruct and supervise the secretary-general to execute business and finance normally. The auditors have the duty to faithfully audit and conduct the business and finance normally and to ensure that the results of the audit do not go beyond the results of the audit.

However, the Defendants, without examining the current status of paper on the Plaintiff’s closing property, shall imprint the seal only, and have committed gross negligence by completely neglecting the audit and inspection of the basic management and operation of the closing property, such as confirmation of bank deposit passbooks and confirmation of the original balance certificate.

The defendants are jointly and severally liable to compensate for the embezzlements embezzled by E during their respective tenure of office. The defendants are obligated to pay to the plaintiff clans clans Association 538,537,268, the amount repaid by E at KRW 168,703,436, the amount repaid by E at KRW 100,000,000, and KRW 269,83,832, and delay damages.

The Defendants asserts that the instant lawsuit is unlawful as it was filed without the legitimate general meeting resolution of the Plaintiff’s clan.

The provisions of Article 265 of the Civil Act concerning the preservation of property jointly owned cannot be applicable to the preservation of property jointly owned. Since the resolution of a general meeting of members pursuant to Article 276(1) of the Civil Act or the procedure pursuant to the articles of incorporation is required pursuant to the articles of incorporation, an unincorporated association shall undergo a resolution of the general meeting of members or undergo a procedure pursuant to the articles of incorporation, even in cases where the association which is not a juristic person files a lawsuit

(Supreme Court Decision 2012Da112299 Decided February 13, 2014, and Supreme Court Decision 2010Da97044 Decided July 28, 201, etc.).