A. Legal nature of Article 11 of the Short-Term Finance Business Act

B. The meaning of and criteria for determining acts within the scope of purpose in corporate legal capacity

A. Article 11 of the Short-term Finance Business Act prohibits, in principle, the operation of funds exceeding a certain limit to the same person. This means that a short-term finance company gives more opportunities to extend loans by regulating the excessive operation of funds to a specific person due to the public nature arising from the financial intermediary function held by the short-term finance company. Therefore, this provision is deemed to be the so-called regulation regulation, and therefore, even if the funds have been managed in violation of this provision, it does not affect the validity of private law.

(b) the corporation’s ability to exercise rights is limited by the law which served as the basis for the incorporation of the corporation and by the purpose of its articles of incorporation, but acts within the scope of that purpose are not limited to the purposes per se specified in articles of incorporation, but to the extent that the acts directly and indirectly necessary for the performance of that purpose are all included, and whether it is necessary for the achievement of the objective is determined by the objective nature of the act,

Article 11 of the Short-Term Finance Business Act, Article 34 of the Civil Act

A.B. (B) Supreme Court Decision 86Meu1230 Decided Dec. 8, 1987; Supreme Court Decision 68Da461 Decided May 21, 1968; Supreme Court Decision 86Meu1349 Decided September 8, 1987

Korea Education Insurance Co., Ltd., Counsel for the Doyang General Law Firm, the maximum mining rate, and the Hunting Constitution

Attorney Seo Young-chul et al., Counsel for the plaintiff-appellant-appellee

Daegu District Court Decision 85Na163 delivered on May 23, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The defendant's attorney's grounds of appeal are examined.

1. Article 11 of the Short-term Finance Business Act provides that "a short-term finance company shall not manage funds exceeding 25/100 of the aggregate amount of capital, reserves and other surplus to the same person except for the case with the approval of the Minister of Finance and Economy," which prohibits in principle the management of funds exceeding a certain limit to the same person. This means that a short-term finance company regulates the fund brokerage function held by the short-term finance company to provide more opportunities for loans to a certain person by providing excessive financing for a specific person. Therefore, this provision is deemed to be the so-called regulation regulation, and therefore, even if the fund has been managed in violation of this provision, it does not affect the validity of private law (see, e.g., Supreme Court Decision 86Meu1230, Dec. 8, 1987). The decision of the court below that the above regulation is just and there is no error in the misapprehension of legal principles, such as theory.

2. In addition, the corporation's ability to exercise rights is limited by the law that served as the basis for the establishment of the company and the purpose of its articles of incorporation, but acts within the scope of the purpose are not limited to the purpose specified in the articles of incorporation itself, but to include all necessary acts directly or indirectly in the performance of the purpose, and whether it is necessary to achieve the purpose shall be determined by the objective nature of the act, and it is not determined by the subjective and specific intent of the actor (see, e.g., Supreme Court Decisions 86Meu1349, Sept. 8, 1987; 86Meu1349, Sept. 8, 1987); and in the same purport, the court below determined that the act of the representative of the defendant company was included within the scope of the purpose of the

3. Accordingly, the appeal shall be dismissed, and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Park Jong-dong (Presiding Justice)