Resignation from CEO does not end board status; formal removal by shareholders is required to terminate employment contract.
Legislator summary
AI generatedThe Supreme Court quashed the lower court's dismissal of the plaintiff's claim for reinstatement, ruling that resigning as CEO does not automatically terminate his board membership. The court held that the plaintiff remained a board member until formally removed by the shareholders' meeting, meaning his employment contract was not legally terminated until that specific act occurred. Consequently, the case was remanded to the regional court to determine if the subsequent termination of his employment was lawful.
Legislator headnote
AI generatedArt. 196 k.h.; Art. 393 § 1 k.p.c.: Resignation by a board member does not automatically terminate their status as a member of the board; formal removal by the competent organ is required, and the employment contract remains valid until such removal is effected.