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| TITLE | Seoul High Court Decision 2020Na2049059 Decided Oct. 28, 2021: Appealed [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 A case where Company A entered into a new share subscription agreement with Company B, whereby Company A would acquire Company B's redeemable share, which stipulated that ‘Company B must obtain prior written consent from Company A before issuing new shares or share-related bonds after the issuance of the aforementioned shares, and in the event of a violation, Company A may demand early redemption of the aforementioned shares and claim penalties,’ but when subsequently, after the issuance of the shares, Company B issued new shares without obtaining Company A's prior written consent, Company A claimed early redemption of the shares and penalties against Company B, the court held that the agreement requiring prior written consent and the agreement providing early redemption and penalties as sanctions for violation were invalid as they violated the principle of equal treatment of shareholders. | |
