Hyundai Securities’ Stockholder’s Derivative Lawsuit!
While Lee Ik Chi, the former chairman of Hyundai Securities, was in office, he has caused damages to the stockholders by manipulating the stock price of Hyundai Electronics. As a result, the Court imposed a fine of 7 billion won on the securities company, and additionally ruled that the company was also liable for 200 billion won for the debt of Hyundai Heavy Industries. Former chairman, Lee Ik Chi, during the sale of the past Hyundai Trust, had signed a written pledge that states Hyundai Securities bears the debt guarantee without having the pass a resolution of the Board of Directors. The staggered shareholders urged Hyundai Securities to file an action to recover the damages, but failed to do so. Therefore, the shareholders themselves, on behalf of the company filed an action against Lee Ik Chi on March 2004, pursuant to Article 403 of the Commercial Code. In February 14, 2010, the Supreme Court dismissed the former chairman’s appeal, and he was to spew out more than a total of 40 billion won; 26.5 billion won in principal and 14 billion won in interest!