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The Study on Corporate litigation - Preliminary Injunctions regarding Corporate Law -

Eunkyoung Yun 1

1제주대학교

Accredited

ABSTRACT

Through a preliminary injunction regarding corporate law, the moving party might obtain the control over a corporation. Injunctive reliefs including preliminary injunction are much more useful and prevalent in resolving corporate disputes such as shareholders disputes, disputes over corporate management and issuance of new shares of a company than a trial on the merits. In certain circumstances, preliminary injunctions regarding corporate law are powerful way for minority shareholders to direct or stop the activities of a corporation. Courts have broad discretion to grant or deny the motion for a preliminary injunction. If a preliminary injunction regarding corporate law issued by the court, parties take appeals as a waste of time. However, a preliminary injunction is issued on the grounds of procedures that are less formal and complete than those in a trial on the merits. The possibility of the reverse conclusion in a trial on the merits is at the heart of concerns. To address this concern, the Korean Civil Execution Act(the “KCEA”) should be amended to restrict the broad discretion of courts under the KCEA in the injunction relief procedure. In conclusion, it seems to be appropriate that (i) the judicial procedures of motion for preliminary injunction should not be held without pleading proceedings; and (ii) the appeal court should have the exclusive jurisdiction of appeals of the preliminary injunction order from the district court.

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