Effect of transfer of shares prior to issuance of shares approved by the company

The transfer of shares before the issuance of share certificates shall have no effect on the company even if the company approves it.

Article 335 (2) of the Commercial Act

Sick Major

Other 1 and 4 others

Gwangju High Court Order 80Ra9 dated August 28, 1980

The reappeal is dismissed.

The grounds of reappeal are examined.

Point 1

In light of the records, it is clear that the first instance court dismissed the application of this case by the examination procedure, and it cannot be seen that there was an error of law such as a mistake in the form of a judgment like the theory of lawsuit. Therefore, the argument is groundless.

Point 2

In the case of a stock company, the transfer of shares before the issuance of share certificates is clearly defined in Article 335(2) of the Commercial Act, and in such a case, even if the company approves the transfer of shares, the transfer of shares cannot be deemed valid in relation to the company. Therefore, the decision of the court below based on the same opinion is justifiable, and there is no error of law such as misunderstanding of legal principles or misunderstanding of legal principles. Thus, it cannot be seen that there is no ground to find out that there is no error

Therefore, the reappeal is dismissed. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Jung-young (Presiding Justice)