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| TITLE | Supreme Court Decision 2009Da80521 Decided October 13, 2011[Damages, etc.] [full Text] |
|---|---|
| Summary | |
| [1] The standards to determine whether an executive officer of a financial institution violates a good-faith manager's duty of care with regard to a loan [2] Whether the result of loss from unpaid loans to a financial institution leads to the presumption of the fact of the failure of duty of care by an executive officer (negative) [3] In case where a director of a financial institution caused losses to the company by making project financing loans under a general and abstract expectation that it would profit the company, whether the director's act can be deemed as within the permitted scope of business judgment discretion (negative) [4] The case holding that, in case where a financial institution suffered losses after giving project financing loans to Gap, Eul, Byung, and Jung companies, which engaged in construction of condominiums, from failure to recover the loans, the judgment below was just in holding that the executive officer of the financial institution's duty of care was not violated as to the loans to Gap, Byung, and Jung companies, but the court below omitted any further review as to the loan to Eul company where violation of the duty of care might be found, thus that part of judgment below contains the error of incomplete review | |
