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TITLE [Wages]Supreme Court Decision 2006Da38161, 38178 Delivered on June 28, 2007 [full Text]
Summary
[1] In case where a company induces its employees to participate in paid-in capital increase and agrees to compensate for loss of paid-in capital in its entirety at the time of employees' resignation from the company, whether such an agreement is invalid as a violation of the principle of shareholder equality (affirmative) [2] The scope of application of a legal principle of partial invalidity and its relation to a norm of jus cogens [3] In case where a company induces its employees to participate in paid-in capital increase and agrees to compensate for loss of paid-in capital in its entirety at the time of employees' resignation from the company, whether the agreement to buy new shares becomes also null and void because the above agreement to compensate for loss of paid-in capital is determined to be invalid (negative) [4] The case holding that in a case where a bank induces its employees to participate in the paid-in capital increase at the face value with the agreement to compensate for entire losses of paid-in capital in violation of the principle of shareholder equality in order to increase the capital adequacy ratio in a short period of time, such an act constitutes an unlawful act as against the law
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