Real Estate Legal Consultation | The Association Members' Provisional Injunction to Suspend the Effect of a General Meeting Resolution Dismissed at the First Instance and on Appeal

The creditor members raised the following arguments, asserting that the extraordinary general meeting in question had a serious procedural defect and that its effect could not be recognized.

1. Failure to meet the requirements for a motion

2. Defect in the notification procedure

3. Failure to meet the quorum

The creditor's side took issue with the legitimacy of convening the general meeting, arguing that a procedural illegality existed because the general meeting was convened without obtaining the consent of at least one-tenth of the association members and because the list of proposers was also not disclosed.

In response, the real estate attorney made clear that the general meeting in question was not convened on the proposal of some association members but was a general meeting convened under the lead of the association's executive body (an authorized person such as the association head or an acting officer) in accordance with the articles of association, and logically rebutted that the consent requirement of association members did not itself apply to the matter.

In addition, the attorney pointed out that disclosure of the list of proposers was not an obligation under the Urban Improvement Act or the articles of association, and emphasized that the creditor's side's argument was merely an expansive interpretation of the requirements without a legal basis.

The attorney also demonstrated, through specific materials, that the entire process of convening the general meeting was conducted lawfully in both form and substance in accordance with the relevant statutes and the articles of association.

The creditor's side argued that the entire general meeting procedure was unlawful, on the grounds that some association members were not notified of the holding of the general meeting and that no separate notice was given even though the schedule of the general meeting had changed.

In response, the real estate attorney, on the premise that notice of the holding of the general meeting had been sent to all association members by registered mail, systematically organized and submitted the postal service supporting materials confirming the sending records and recipient information.

The attorney also argued that even if some association members did not become aware of the content of the notice due to personal circumstances, this could not be viewed as a fault attributable to the association, and that this alone could not negate the validity of the general meeting procedure.

The creditor's side argued that, because the number of association members present on the day of the general meeting and the number of those voting in writing fell short of the quorum for deliberation set by the articles of association, the resolution itself could not be validly established.

The real estate attorney comprehensively reviewed and calculated the number of attendees at the general meeting and the status of the written resolutions submitted, and proved through figures and materials that the quorum for deliberation required under the articles of association was sufficiently met.

In addition, the attorney also argued that the items resolved had been sufficiently notified in advance and that there had been no substantial restriction on the association members' exercise of their voting rights.

An injunction to suspend a general meeting resolution is a civil preservative measure by which a person (a creditor) who claims that procedural or substantive grounds of illegality exist with respect to a resolution made at a general meeting applies to the court to temporarily suspend the effect of that resolution.

This is a system used to prevent, while the suit on the merits (a lawsuit for confirmation of the invalidity or for revocation of the general meeting resolution) is in progress, the occurrence of harm that would be difficult to recover if the general meeting resolution at issue were executed.

For the court to suspend the effect of a general meeting resolution, the member of the creditor side must sufficiently establish the following requirements.

Issues such as the convocation of a general meeting, notice, calculation of a quorum, and the announcement of a postponement are areas that, in practice, involve detailed legal requirements, and the possibility of an unfavorable determination being made due to administrative errors within the association or a lack of materials cannot be ruled out.

Therefore, in order to clearly organize the association's position in such procedural disputes and respond in a way that can prove its legal legitimacy, the assistance of a real estate attorney who has handled many real estate cases is critical.

Daeryun LLC, with real estate attorneys who have handled many cases related to real estate and improvement projects, provides systematic real estate legal consultation on the full range of disputes that may arise during the redevelopment and reconstruction process.

If you are experiencing difficulty in a situation such as the above, please promptly request a real estate legal consultation from a 🔗real estate attorney.