This study deals with the director's liability in the liquidation and rehabilitation procedures of a corporation.
Under the Korean legal system, director's liability is primarily regulated by Commercial Law in a general manner. Specific liability can...
This study deals with the director's liability in the liquidation and rehabilitation procedures of a corporation.
Under the Korean legal system, director's liability is primarily regulated by Commercial Law in a general manner. Specific liability can be imposed on a director by the provisions of the Bankruptcy, Composition or Reorganization Act.
A director, as a trustee of a corporation, has a authority and power to manage and supervise the corporation, and at the same time bears the liability for the breach of his/her duties. So far under Korean bankruptcy law, only director's criminal liability has been emphasized, but regulations on the civil liability has not been legislated in a sophisticated manner. As a result it is difficult to impose liability directors for failing to file bankruptcy petition in appropriate time.
Therefore this study emphasizes the followings;
First, director's liability in bankruptcy proceedings should be specified in detail.
Second, the liability of a director under a reorganization procedure and under a liquidation procedure should be harmonized.
Third, the provisions concerning the director's liability should be revised to remove any conflicts among various bankruptcy procedures.