Supreme Court voids employment contract signed by audit committee chair, dismissing social security appeal.
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal against the Social Insurance Institution's decision that the applicant did not qualify for social security coverage. The court found the employment contract void because the audit committee lacked statutory authority to represent the company and hire board members, as such powers are reserved for the supervisory board or authorized proxies. Consequently, the contract was deemed invalid under the Civil Code, and the applicant was correctly excluded from social security obligations.
Legislator headnote
AI generatedArt. 214 § 3 KH; Art. 203 KH; Art. 58 KC: The extension of audit committee powers under the Commercial Code cannot include the authority to represent the company in concluding employment contracts with board members, rendering such contracts void if no valid proxy exists.