CHAPTER I GENERAL PROVISIONS
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| Article 1 (Purpose) |
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The purpose of this Act is to provide sound investment opportunities in ships by prescribing necessary matters concerning the establishment, management, etc. of a ship investment company, and to contribute to the national economy thereby, such as activation of marine transportation industry.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 2 (Definitions) |
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The terms used in this Act shall be defined as follows: <Amended by Act No. 8852, Feb. 29, 2008>
| 1. |
The term "ship investment company" means a company established under this Act for the purposes of investing assets in ships (referring to ships under subparagraph 1 of Article 2 of the Ship Safety Act; hereinafter the same shall apply) and distributing any profits accruing from such investment to shareholders; |
| 2. |
The term "ship management company" means a company engaged in business to manage assets, such as ships, by being entrusted by a ship investment company and which has obtained permission from the Minister of Land, Transport and Maritime Affairs under Article 31; |
| 3. |
The term "asset holding company" means a trust company under the Financial Investment Services and Capital Markets Act engaged in business to hold the assets, and other business related to such holding by being entrusted by a ship investment company; |
| 4. |
The term "ship operation company" means a company engaged in business to operate or charter ships by being chartered ships owned by a ship investment company or its subsidiary. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 3 (Ship Investment Company) |
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| (1) |
A ship investment company shall be a stock company. |
| (2) |
Where it is necessarily related to business referred to in any subparagraph of Article 24 (1), a ship investment company may establish its subsidiaries in or outside Korea. In such cases, the business conducted by subsidiaries shall be deemed conducted by a ship investment company. |
| (3) |
Each ship investment company shall own one ship: Provided, That where it establishes subsidiaries, each subsidiary shall own one ship, respectively. In such cases, a ship investment company may not own its ship separately. |
| (4) |
A ship investment company and its subsidiaries may not replace a ship owned by themselves with another ship during the period of their existence. |
| (5) |
A ship investment company may not establish a place of business other than the principal office nor have full-time executives or employees. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 4 (Application of Commercial Act) |
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The Commercial Act shall apply to a ship investment company unless otherwise specifically provided for in this Act.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 5 (Use of Name) |
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| (1) |
A ship investment company shall use the name of ship investment company in its trade name. |
| (2) |
No person other than a ship investment company under this Act shall use the name of ship investment company or its similar name. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
CHAPTER II ESTABLISHMENT, AUTHORIZATION AND ISSUANCE OF STOCKS
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| Article 6 (Period of Existence) |
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The period of existence of a ship investment company shall be three years or more, from the date when authorization of ship investment business is obtained under Article 13.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 7 (Promoters) |
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| (1) |
No person who falls under any of the following subparagraphs shall be eligible to be a promoter of a ship investment company: |
| 1. |
A minor, an incompetent person, or a quasi-incompetent person; |
| 2. |
A person declared bankrupt, but not yet reinstated; |
| 3. |
A person for whom two years have not yet elapsed since the completion (including cases where the execution is deemed to have completed) of, or exemption from, a sentence of imprisonment without labor or heavier punishment, as declared by a court; |
| 4. |
A person for whom two years have not yet elapsed after being sentenced to a fine in violation of this Act or Acts related to marine transportation or finance prescribed by Presidential Decree (including foreign Acts equivalent thereto; hereinafter referred to as "Acts related to marine transportation or finance"); |
| 5. |
A person who is under a suspended sentence of imprisonment without labor or heavier punishment, as declared by a court; |
| 6. |
A person who was an executive or an employee of a corporation whose business permission, authorization, registration, etc. was revoked under this Act or Acts related to marine transportation or finance (limited to a person who was directly or correspondingly responsible for the cause of revocation of such business permission, authorization, registration, etc. and who is prescribed by Presidential Decree) and for whom five years have not elapsed from the date when permission, etc. for such corporation was revoked; |
| 7. |
A person for whom five years have not yet elapsed since the date of dismissal or removal from office of an executive or employee in a corporation due to his/her violation of this Act or Acts related to marine transportation or finance. |
| (2) |
Promoters of a ship investment company shall underwrite stocks in excess of the rate prescribed by Presidential Decree within the limit not exceeding 30/100 of the stocks to be issued. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 8 (Articles of Incorporation) |
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| (1) |
Promoters of a ship investment company shall prepare the articles of incorporation, including the matters falling under the following subparagraphs, and all of them shall put their names and seals or signatures thereon: |
| 3. |
Total number of stocks to be issued; |
| 5. |
Total number of stocks to be issued at the time of establishment; |
| 7. |
Limit on borrowing of funds and issuance of bonds; |
| 8. |
Basic direction of asset management; |
| 9. |
Matters concerning the distribution of profits, capital increase or reduction, etc.; |
| 10. |
Location of a company; |
| 11. |
Method of public notice; |
| 12. |
Standards for remuneration of directors and auditors; |
| 13. |
Main terms of an asset management agreement to be entered into with a ship management company (including standards for asset management fees to be paid to a ship management company); |
| 14. |
Main terms of an asset holding agreement to be entered into with an asset holding company; |
| 15. |
Main terms of an agreement to be entered into concerning the building, sale and purchase, and chartering of ships; |
| 16. |
Names, resident registration numbers and addresses of promoters (where a promoter is a juristic person, its trade name, registration number and location of principal office); |
| 17. |
Other matters concerning the operation of a ship investment company prescribed by Presidential Decree. |
| (2) |
The total number of stocks to be issued under paragraph (1) 5 may be determined by fixing an upper and a lower limit. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 9 (Subscription, etc. for Underwriting of Stocks) |
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| (1) |
Where promoters solicit a subscription for underwriting of the stocks to be issued at the time of establishment of a ship investment company, they shall furnish the other party with investment prospectus that describes the purpose of establishment of a ship investment company, chartering plan and other matters prescribed by Presidential Decree. |
| (2) |
Promoters shall provide those who intend to subscribe for underwriting of the stocks with a subscription form for stocks that describes the matters falling under the following subparagraphs; <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
Matters referred to in subparagraphs of Article 8 (1); |
| 2. |
Where the grounds for dissolution are provided for in the articles of incorporation, such details; |
| 3. |
Kind and number of stocks to be underwritten by promoters; |
| 4. |
Method of allotting stocks to be issued at the time of establishment and due date of payment for stocks; |
| 5. |
Financial institution that is assigned to receive the payment for stocks and the place of payment; |
| 6. |
Names and addresses of candidates for directors and auditors; |
| 7. |
Matters concerning financing; |
| 8. |
Name and address of the ship management company to enter into a business trust agreement; |
| 9. |
Name (in cases of a juristic person, its trade name) and address of a person to enter into an agreement concerning the building, purchase and chartering of ships; |
| 10. |
Statement that the establishment of a ship investment company may be cancelled where the number of stocks subscribed for underwriting is less than that to be issued at the time of establishment; |
| 11. |
Statement that any person who has subscribed for underwriting of stocks may cancel such subscription if a ship investment company is not established by the fixed time or cannot obtain authorization from the Minister of Land, Transport and Maritime Affairs under this Act; |
| 12. |
Other matters concerning the interest relationship of shareholders prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 10 (Restriction on Abnormal Incorporation) |
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[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 11 (Deemed Appointment of Directors and Auditors) |
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| (1) |
Candidates for directors and auditors written in a subscription form for stocks shall be deemed appointed as directors and auditors when the allotment of stocks is completed. |
| (2) |
Directors and auditors under paragraph (1) shall obtain the approval through the inaugural general meeting. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 12 (Matters, etc. to be Registered for Establishment) |
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| (1) |
Matters to be registered for establishment shall be as follows: |
| 1. |
Matters referred to in Article 8 (1) 1 through 5, 7, 11 and 12; |
| 2. |
Where the grounds for dissolution of a ship investment company are provided for in the articles of incorporation, such details; |
| 3. |
Name and address of a transfer agent; |
| 4. |
Names, resident registration numbers and addresses of directors and auditors; |
| 5. |
Name, resident registration number and address of a director representing a company; |
| 6. |
Where it is determined that more than two directors are to represent a ship investment company, such details. |
| (2) |
Where the registration of establishment is applied, documents prescribed by Presidential Decree shall be attached. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 13 (Authorization of Ship Investment Business) |
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| (1) |
Where a ship investment company intends to conduct business referred to in any subparagraph of Article 24 (1), it shall obtain the authorization from the Minister of Land, Transport and Maritime Affairs, as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. The same shall apply where any authorized matters are changed. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) |
When the Minister of Land, Transport and Maritime Affairs authorizes under paragraph (1), he/she shall deliberate whether the following matters are satisfied: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
A ship investment company has been established under this Act; |
| 2. |
A business plan shall be specific, reasonable and sound; |
| 3. |
A business trust agreement to be entered into with a ship management company and an asset holding company shall be appropriate; |
| 4. |
A charter party agreement to be entered into with a ship operation company shall be appropriate; |
| 5. |
Appropriate measures shall be prepared against cases where forfeited stocks occur when the stocks are offered for public subscription. |
| (3) |
Where the Minister of Land, Transport and Maritime Affairs authorizes under paragraph (1), he/she may attach conditions or restrict the scope of business in order to secure the soundness of management and protect investors. <Amended by Act No. 8852, Feb. 29, 2008> |
| (4) |
Where the Minister of Land, Transport and Maritime Affairs has authorized under paragraph (1), he/she notify the details thereof to the Financial Services Commission and publicly announce the details thereof through the Official Gazette, computer communications, etc., as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 13-2 (Authorization of Ship Investment Business for Authorized Ship Only) |
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| (1) |
The Minister of Land, Transport and Maritime Affairs may authorize the establishment of a ship investment company that conducts business exclusively for the authorized ships (referring to ships owned by the State by sale on deferred payment or operated by being chartered; hereinafter the same shall apply). <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) |
Where the Minister of Land, Transport and Maritime Affairs authorizes pursuant to Article 13 (1) to a ship investment company under paragraph (1), he/she shall consult with the Minister of Strategy and Finance in advance concerning the matters falling under the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
Authorized ships concerned; |
| 2. |
Building plan and management plan of authorized ships by a ship investment company; |
| 3. |
Matters concerning the transfer of ownership of authorized ships by sale on deferred payment; |
| 4. |
Matters concerning the terms, methods, procedures and conditions of an agreement between the State and a ship investment company concerning the building, etc. of authorized ships; |
| 5. |
Matters concerning the dividends rate to shareholders of a ship investment company, method of guarantee, etc. |
| (3) |
With respect to a ship investment company under paragraph (1), the sale on deferred payment for the transfer of ownership of authorized ships shall be added to the scope of business referred to in any subparagraph of Article 24 (1). In such cases, the period of sale on deferred payment shall be deemed the period of chartering under Article 26 (1). |
| (4) |
The provisions of Articles 13 (2) 4 and 26 concerning a ship operation company shall apply mutatis mutandis to the authorized ships. In such cases, "ship operation company" shall be deemed the "State". |
| (5) |
Articles 3 (3) and 27 (1) and the main sentence of Article 28 shall not apply to a ship investment company under paragraph (1). |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 14 (Invalidation of Authorization) |
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| (1) |
When a ship investment company does not commence its business until six months have elapsed from the date when authorization was obtained under Article 13 (1), such authorization shall be null and void. |
| (2) |
Notwithstanding paragraph (1), where it is deemed that any justifiable reason exists, the Minister of Land, Transport and Maritime Affairs may extend the period referred to in paragraph (1) within six months by receiving an application of a ship investment company. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 14-2 Deleted.<by Act No. 9707, May 22, 2009> |
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SECTION 3 Issuance of Stocks
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| Article 15 (Issuance of Stocks) |
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| (1) |
Where a ship investment company issues stocks after its establishment and solicits a subscription for underwriting thereof, it shall prepare a subscription form for stocks and investment prospectus as prescribed by Presidential Decree and furnish them to those who intend to underwrite the stocks. |
| (2) |
No ship investment company may issue stocks after the building or purchase of ships is completed. |
| (3) |
No shareholder of a ship investment company may request the redemption of stocks during the period of existence of a ship investment company. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 16 (Terms of Issuance) |
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| (1) |
Where a ship investment company issues stocks after its establishment, the issue price and other terms of issuance for the same kind of stocks that are issued on the same day shall be uniformly established. |
| (2) |
In cases of paragraph (1), the issue price of stocks shall be calculated on the basis of market value, asset value and earning value of a ship investment company concerned in such manner as prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 17 (Listing, etc. of Stocks) |
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| (1) |
When a ship investment company meets the listing requirements of the listing regulations under Article 390 (1) of the Financial Investment Services and Capital Markets Act, it shall, without delay, list its stocks on the securities market and cause them to be traded. |
| (2) |
Where a ship investment company fails to list its stocks on the securities market under paragraph (1) without justifiable grounds, the Minister of Land, Transport and Maritime Affairs may order the company to list its stocks for a fixed period. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 18 (Restriction on Holding of Stocks) |
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| (1) |
The total number of stocks in a ship investment company held by a ship management company, an asset holding company, a ship operation company or a person who has entered into an agreement for building or sale and purchase of ships (hereafter referred to as "ship management company, etc." in this Article) and its respective specially-related persons shall not exceed 25/100 of the total number of issued stocks of such ship investment company. |
| (2) |
When a ship management company, etc. and its respective specially-related persons hold the stocks of a ship investment company in violation of paragraph (1), they shall not exercise the voting rights for the stocks exceeding 25/100 of such stocks. |
| (3) |
If a ship management company, etc. and its respective specially-related persons hold the stocks exceeding 25/100 of the total number of issued stocks of a ship investment company, the Minister of Land, Transport and Maritime Affairs may order them to dispose of such excess stocks for a fixed period within three months. <Amended by Act No. 8852, Feb. 29, 2008> |
| (4) |
The scope of specially-related persons under the provisions of paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 19 (Restriction on Acquisition of Treasury Stocks and Pledge) |
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Unless provided for by Presidential Decree, no ship investment company may acquire its own stocks or provide them as a pledge.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 20 (Qualifications of Directors) |
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No person falling under any subparagraph of Article 7 (1) shall be a director of a ship investment company.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 21 (Duties of Board of Directors) |
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| (1) |
Where a ship investment company is engaged in any of the acts falling under any of the following subparagraphs, it shall undergo a resolution of the board of directors: |
| 1. |
Matters concerning a building agreement or sale and purchase of ships; |
| 2. |
Matters concerning a charter party agreement of ships; |
| 3. |
Matters concerning a business trust agreement with a ship management company and an asset holding company; |
| 4. |
Borrowing of funds or issuance of bonds; |
| 5. |
Expenses incurred in managing ships or other assets; |
| 6. |
Other matters deemed important for the operation of a ship investment company provided for in the articles of incorporation. |
| (2) |
Where a ship investment company is engaged in matters referred to in paragraph (1) 1 through 3, it shall undergo a resolution of a general meeting of shareholders: Provided, That the same shall not apply where a ship investment company enters into a business trust agreement with a person that becomes a ship management company upon establishment. |
| (3) |
The board of directors shall evaluate the statement of asset management, etc. reported by a ship management company and report such results to a general meeting of shareholders at least once every year. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 22 (Convening of Meeting of Board of Directors) |
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Where a director intends to convene a meeting of the board of directors, he/she shall give notice thereof to each director and auditor five days before the date of the meeting.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 23 (Written Resolutions) |
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| (1) |
Directors may exercise their voting rights in writing without attending a meeting of the board of directors. |
| (2) |
A director who intends to convene a meeting of the board of directors shall, when informing the convening of the meeting, send the necessary documents for exercising voting rights in writing. |
| (3) |
Any director who intends to exercise voting rights in writing shall state the contents of the exercise of voting rights in the documents under paragraph (2) and submit them to the board of directors not later than the day preceding the meeting. |
| (4) |
The number of directors who exercise voting rights in writing shall be included in the number of directors present at the meeting. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 24 (Scope of Business) |
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| (1) |
A ship investment company may conduct business falling under the following subparagraphs: |
| 3. |
Borrowing of funds and issuance of bonds; |
| 5. |
Management and sale of ships purchased; |
| 6. |
Other business prescribed by Presidential Decree. |
| (2) |
No ship investment company may be concurrently engaged in business other than that referred to in paragraph (1). |
| (3) |
No ship investment company may invest the assets in securities: Provided, That the same shall not apply where it acquires the stocks of its subsidiary to be established under Article 3 (2). |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 25 (Borrowing of Funds and Issuance of Bonds) |
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| (1) |
A ship investment company may borrow funds or issue bonds only in cases where using them for the following purposes. Notwithstanding Article 21 (1) 4, in cases where using them as working funds, it shall undergo a resolution of a general meeting of shareholders: |
| 1. |
Purchase or remodelling of ships; |
| 2. |
Repayment of existing borrowed funds or bonds. |
| (2) |
The limit of borrowing of funds and issuance of bonds under paragraph (1) shall be prescribed by Presidential Decree within the scope not exceeding ten times of the capital: Provided, That where it is subjected to the conditions that any borrowed funds or issued bonds should be repaid with the paid-in capital of the relevant ship investment company within three months from the date of borrowing funds or issuing date of bonds within the scope of the total amount of par value of the stocks to be issued which is approved under Article 13 (1), the funds may be borrowed or bonds may be issued exceeding ten times of the capital. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 26 (Chartering) |
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| (1) |
A ship investment company shall lease its owned ship to a ship operation company for a fixed period of two years or more. |
| (2) |
A ship investment company may charter its ship under the condition that it should transfer the ownership of the ship to a ship operation company at the time when the period of chartering under paragraph (1) expires. |
| (3) |
Necessary matters concerning the methods, procedures, etc. of the chartering under paragraph (2) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 27 (Restriction on Ownership, etc. of Ships) |
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| (1) |
A ship investment company and its subsidiary shall own ships which have passed the inspection by an internationally recognized ship inspection institution (hereafter referred to as "ship inspection" in this Article). Any ship that is under construction shall receive the ship inspection without delay after completion of the construction. |
| (2) |
The scope of ship inspection institutions under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 28 (Purchase of Insurance Policies) |
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A ship investment company shall purchase an insurance policy for its owned ship in order to indemnify any loss caused by fatalities, ships, pollution, etc.: Provided, That where a ship operation company has purchased an insurance policy for a ship chartered from a ship investment company, the ship investment company shall be deemed to have purchased such insurance policy.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 29 (Restriction on Transaction) |
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| (1) |
No ship investment company shall conduct any transaction with a person falling under any of the following subparagraphs concerning the transaction referred to in any subparagraph of Article 24 (1): |
| 1. |
An executive of a relevant ship investment company and his/her specially-related persons; |
| 2. |
A ship management company that has entered into a trust agreement with a ship investment company, its executives and employees, and their specially-related persons; |
| 3. |
A shareholder who holds 10/100 or more of the stocks in a relevant ship investment company and any person specially related thereto. |
| (2) |
The scope of specially-related persons under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 30 (Entrustment of Business) |
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| (1) |
A ship investment company shall entrust the business referred to in subparagraphs of Article 24 (1) to a ship management company. |
| (2) |
Where a ship management company conducts business concerning the invitation of subscription or sale and purchase of the stocks to be issued under Article 24 (1) 4 of the business entrusted under paragraph (1), it shall obtain authorization for investment trading business or investment brokerage business under the Financial Investment Services and Capital Markets Act: Provided, That where the Minister of Land, Transport and Maritime Affairs has already consulted with the Financial Services Commission concerning the authorization for the relevant investment trading business or investment brokerage business when a ship management company is registered, such ship investment company shall be deemed to have obtained the authorization for investment trading business or investment brokerage business by limiting itself to the business concerning the invitation of subscription or sale and purchase of the stocks. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 31 (Permission, etc. of Ship Management Company) |
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| (1) |
Any person who intends to conduct business of managing assets, such as ships, by being entrusted by a ship investment company shall satisfy the requirements falling under each of the following subparagraphs and obtain permission from the Minister of Land, Transport and Maritime Affairs: <Amended by Act No. 8852, Feb. 29, 2008> |
| 2. |
Its paid-in capital shall be five billion won or more and exceed the amount prescribed by Presidential Decree; |
| 3. |
The number of ship management specialists and finance specialists satisfying the conditions prescribed by Presidential Decree, such as the working experience in marine transportation business referred to in subparagraph 1 of Article 2 of the Marine Transportation Act or in financial institutions of the full-time executives and employees, shall be more than that prescribed by Presidential Decree; |
| 4. |
The business plan shall be appropriate and sound; |
| 5. |
No executive shall fall under any subparagraph of Article 7 (1); |
| 6. |
Major shareholders prescribed by Presidential Decree shall have sufficient investment capacity and sound financial status; |
| 7. |
A system shall be established to prevent conflicts of interests between a ship management company and investors, and special investors and other investors (limited to a ship management company of a public ship investment company under Article 55-2 (1)). |
| (2) |
Detailed matters concerning the requirements for permission under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) |
No person, other than a ship management company, shall use the name of a ship management company or any name similar thereto in its trade name. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 32 (Restriction, etc. on Concurrent Engagement of Ship Management Company) |
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| (1) |
No ship management company shall be concurrently engaged in other business except where it is allowed under this Act: Provided, That the same shall not apply where it has obtained approval from the Minister of Land, Transport and Maritime Affairs. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) |
No full-time executive of a ship management company shall become a full-time executive or employee of another company, nor manage other business unless it has obtained approval from the Minister of Land, Transport and Maritime Affairs. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 33 (General Standards for Acts of Ship Management Company) |
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| (1) |
A ship management company shall faithfully conduct its business with such due care as is required of a good manager in accordance with this Act and the business trust agreement. |
| (2) |
No ship management company shall be engaged in any act falling under any of the following subparagraphs concerning the business entrusted by a ship investment company: |
| 1. |
Providing any profits accruing from the management of ships as security or lending or transferring them to others; |
| 2. |
Guaranteeing or promising certain profits to a ship investment company; |
| 3. |
Causing a ship management company to bear or to promise any full or partial loss accruing from the management of entrusted ships; |
| 4. |
Facilitating its own interests or those of a third party with ships entrusted for management by a ship investment company; |
| 5. |
Act likely to be harmful to an interest of a ship investment company and its shareholders and prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 34 (Detailed Standards concerning Permission and Business of Ship Management Company) |
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Except as provided for in Articles 31 through 33, necessary matters concerning permission and business of a shop management company shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
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| Article 34-2 (Minimum Amount of Net Assets of Ship Management Company) |
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A ship management company shall maintain the minimum amount of net assets prescribed by Presidential Decree, to within five billion won, from the date one year elapses after obtaining permission under Article 31 (1).
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 34-3 (Responsibilities of Ship Management Company) |
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| (1) |
Where a ship management company causes any losses to a ship investment company that has entrusted business under Article 24 (1) in violation of general standards for acts referred to in Article 33, it shall be liable to compensate for such losses. |
| (2) |
Where a ship management company is liable to compensate for losses under paragraph (1) and any related directors or auditors have any causes attributable to them, they shall be liable to compensate for such losses jointly and severally. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 35 (Urgent Termination, etc. of Agreements) |
|
Notwithstanding the main sentence of Article 21 (2), in any case falling under any of the following subparagraphs, a ship investment company may terminate a business trust agreement with a ship management company through a resolution of a meeting of the board of directors and enter into a business trust agreement by selecting another ship management company. In such cases, it shall, without delay, obtain approval at a general meeting of shareholders, and if such approval has not been obtained, the termination and execution of the business trust agreement with a ship management company shall lose its effect in the future:
| 1. |
Where a ship management company that has violated obligations under this Act or Acts related to marine transportation or finance or business trust agreement, is likely to cause serious loss to a ship investment company concerned unless an agreement is terminated urgently; |
| 2. |
Where a ship management company has difficulty in conducting all or some of its business continuously for reasons, such as business suspension or dissolution. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 36 (Entrustment of Asset Holding) |
|
| (1) |
A ship investment company shall entrust the business of keeping documents certifying the relationship of rights of assets and ships owned as prescribed by Presidential Decree and its related business to an asset holding company. |
| (3) |
Necessary matters concerning the method, etc. of entering into an agreement concerning entrustment, such as asset holding business under paragraph (1), shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 37 (Obligations, etc. of Asset Holding Companies) |
|
| (1) |
An asset holding company shall faithfully perform its business for a ship investment company with such due care as is required of a good manager in accordance with Acts and subordinate statutes and an asset holding agreement. |
| (2) |
An asset holding company shall comply with Acts and subordinate statutes and establish necessary procedures and standards for the performance of its business, as prescribed by Presidential Decree, in order to soundly hold the assets entrusted to it. |
| (3) |
An asset holding company shall manage the assets entrusted by a ship investment company by separating them from its own property and the assets entrusted for holding from a third party. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
CHAPTER V SETTLEMENT OF ACCOUNTS
law view
| Article 38 (Preparation, etc. of Statements for Settlement of Accounts) |
|
| (1) |
A director of a ship investment company shall prepare the following documents and their annexed specifications (hereinafter referred to as "statements for settlement of accounts") each term for settlement of accounts and obtain the approval of the board of directors: |
| 1. |
A statement of financial position; |
| 3. |
A statement of appropriation of retained earnings and statement of cash flows; |
| 4. |
A statement of distribution of profits under Article 41. |
| (2) |
A director of a ship investment company shall submit the statements for settlement of accounts to an auditor by not later than four weeks prior to the date set for the general meeting of shareholders. |
| (3) |
A director of a ship investment company shall prepare an asset management report each term for settlement of accounts and report it to the board of directors. |
| (4) |
Standards for preparing the statements for settlement of accounts and matters to be stated therein shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 39 (Audit Reports) |
|
| (1) |
An auditor shall prepare an audit report within two weeks after the date of receiving the statements for settlement of accounts under Article 38 (2) and submit it to a director. |
| (2) |
The matters to be stated in an audit report under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 40 (Approval, etc. of Statements for Settlement of Accounts) |
|
| (1) |
A director shall submit the statements for settlement of accounts approved by a meeting of the board of directors to a general meeting of shareholders for its approval. In such cases, an audit report under Article 39 (1) shall also be submitted. |
| (2) |
Upon obtaining the approval of the statements for settlement of accounts by a general meeting of shareholders under paragraph (1), a director shall, without delay, submit the following documents to the Minister of Land, Transport and Maritime Affairs and publicly announce the balance sheet and audit report: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
Statements for settlement of accounts approved by a general meeting of shareholders; |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 41 (Distribution of Profits) |
|
| (1) |
A ship investment company shall distribute the amount calculated by deducting repayments due to borrowing of funds and issuance of bonds under Article 25 and operating expenses determined by Presidential Decree from the profits accruing from the management of assets to its shareholders. |
| (3) |
In cases falling under any of the following subparagraphs, a ship investment company may distribute the amount to its shareholders even during the period of building of its owned ships: |
| 1. |
Where the building price of ships is discounted by the person who builds the ships; |
| 2. |
Where any revenue accrues from the capital; |
| 3. |
Where any revenues accrue from a ship operation company; |
| 4. |
Where any other revenue accrues. |
| (4) |
A ship investment company may, where a resolution of a general meeting of shareholders has been passed, or as prescribed by the articles of incorporation, distribute the amount under paragraphs (1) and (3) by determining certain date at least once every year. |
| (5) |
Necessary matters, such as the method of calculating any necessary distributable amount for the distribution of the amount under paragraph (4), shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 42 (Keeping, etc. of Statements for Settlement of Accounts) |
|
| (1) |
A ship investment company shall keep the documents falling under the following subparagraphs: |
| 1. |
Statements for settlement of accounts approved by a general meeting of shareholders; |
| 3. |
Articles of incorporation; |
| 4. |
Minutes of general meeting of shareholders; |
| 5. |
Register of shareholders; |
| 6. |
Minutes of the board of directors. |
| (2) |
A ship investment company shall send the documents referred to in paragraph (1) to a ship management company and have it keep them at its place of business. |
| (3) |
A ship investment company shall keep the documents referred to in paragraph (1) 1 and 2 for five years from the date when approval thereof has been obtained under Article 40 (1). |
| (4) |
A ship investment company shall allow its shareholders and creditors to peruse the documents refereed to in paragraph (1). Where the shareholders and creditors request the issuance of certified copies or abstracts of such documents, the company shall issue them. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 43 (Report of Statement of Asset Management) |
|
A ship management company shall report the statement of asset management to the Minister of Land, Transport and Maritime Affairs every six months. <Amended by Act No. 8852, Feb. 29, 2008>
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 44 (Supervision, Inspection, etc.) |
|
| (1) |
In any case falling under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs may order a ship investment company, a ship management company and an asset holding company to submit or report on data concerning business affairs, etc. under this Act, for the sound operation of a ship investment company and protection of shareholders: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
Where the restriction on transactions under Article 29 has been violated; |
| 2. |
Where the requirements for permission of a ship management company under Article 31 have been violated; |
| 3. |
Where the restriction, etc. on concurrent engagement of a ship management company under Article 32 has been violated; |
| 4. |
Where general standards for acts of a ship management company under Article 33 have been violated; |
| 5. |
Where the obligations of an asset holding company under Article 37 have been violated. |
| (2) |
The Minister of Land, Transport and Maritime Affairs may have any employee under his/her jurisdiction inspect business affairs, etc. falling under any of the following subparagraphs of a ship investment company or a ship management company: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
Restriction on holding of stocks by specially-related persons under Article 18; |
| 2. |
Borrowing of funds and issuance of bonds under Article 25; |
| (3) |
Where conducting an inspection under paragraph (2), an inspection schedule regarding the time and date, grounds, subject matters, etc. of an inspection shall be notified to the person subject to inspection by not later than seven days before the inspection: Provided, That the same shall not apply to cases of urgency or where it is deemed that the aim of inspection may not be achieved due to destruction of evidence, etc. when notified in advance. |
| (4) |
Where an inspection is completed under paragraph (2), the Minister of Land, Transport and Maritime Affairs shall notify the result to the person subject to inspection in writing. <Amended by Act No. 8852, Feb. 29, 2008> |
| (5) |
Any public official conducting an inspection under paragraph (2) shall carry identification indicating his/her authority and present it to the persons concerned. |
| (6) |
Where a ship investment company or a ship management company has violated this Act or any order or disposition under this Act as a result of the inspection under paragraph (2), or a public ship investment company under Article 55-2 (1) or a ship management company (excluding a ship management company entrusted with the operation of assets, such as ships, only by a ship investment company not a public ship investment company) has violated the Financial Investment Services and Capital Markets Act or any order or disposition under the same Act, the Minister of Land, Transport and Maritime Affairs may take measures falling under any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008> |
| 1. |
All or some business suspension; |
| 2. |
Request for dismissal of executives or disciplinary action against executives and employees; |
| 3. |
Other necessary measures for correction of any violation prescribed by Presidential Decree. |
| (7) |
Where an asset holding company has violated this Act or any order or disposition under this Act, the Land, Transport and Maritime Affairs may request the Financial Services Commission to take any necessary measures under the relevant Acts. In such cases, the Financial Services Commission shall comply with such request unless any special reason exists to the contrary. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 45 (Supervision by Financial Services Commission) |
|
| (1) |
Where it is deemed necessary for financial supervision for the sound operation of a ship investment company and protection of shareholders, the Financial Services Commission may order a ship investment company, a ship management company and an asset holding company to submit or report on the data concerning business related to the relevant financial supervision. <Amended by Act No. 8863, Feb. 29, 2008> |
| (2) |
Where it is deemed necessary for financial supervision, the Governor of the Financial Supervisory Commission under Article 24 of the Act on the Establishment, etc. of Financial Services Commission may have any employees under his/her jurisdiction inspect business concerning financial supervision of the business of a ship investment company, a ship management company and an asset holding company. <Amended by Act No. 8863, Feb. 29, 2008> |
| (3) |
Where a ship investment company or a ship management company has violated this Act or any order or disposition under this Act while conducting business related to financial supervision, or a public ship investment company under Article 55-2 (1) or a ship management company (excluding a ship management company entrusted with the operation of assets, such as ships, only by a ship investment company not a public ship investment company) has violated the Financial Investment Services and Capital Markets Act or any order or disposition under the same Act, the Financial Services Commission may request the Minister of Land, Transport and Maritime Affairs to take any necessary measures against such company under the relevant Acts and subordinate statutes, and the Minister of Land, Transport and Maritime Affairs shall comply with such request unless any special reason exists to the contrary. In such cases, the Minister of Land, Transport and Maritime Affairs shall inform the details of such measures to the Financial Services Commission. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 46 (Revocation of Authorization of Ship Investment Business) |
|
Where a ship investment company falls under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs may revoke the authorization of a ship investment business under Article 13 (1): Provided, That such authorization shall be revoked in cases falling under any of subparagraphs 1 through 3: <Amended by Act No. 8852, Feb. 29, 2008>
| 1. |
Where it has been dissolved; |
| 2. |
Where a ship has been destroyed; |
| 3. |
Where it has obtained authorization by fraud or other wrongful means; |
| 4. |
Where it cannot maintain the requirements for authorization under this Act after obtaining the authorization. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 47 (Revocation of Permission of Ship Management Companies) |
|
Where a ship management company falls under subparagraph 1 or 2, the Minister of Land, Transport and Maritime Affairs shall revoke the permission and where it falls under any of subparagraphs 3 through 6, he/she shall order it to correct for a fixed period and revoke the permission when it fails to take corrective measures: <Amended by Act No. 8852, Feb. 29, 2008>
| 1. |
Where it has been dissolved; |
| 2. |
Where it has obtained permission by fraud or other wrongful means; |
| 3. |
Where it cannot maintain the requirements for permission under Article 31 (1) 1 through 5; |
| 4. |
Where it cannot satisfy the requirements for permission under Article 31 (1) 6 for two years continuously; |
| 5. |
Where it fails to commence business until one year after obtaining the permission; |
| 6. |
Where it cannot maintain the requirements for minimum amount of net assets under Article 34-2. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
CHAPTER VII MERGER, DISSOLUTION AND LIQUIDATION
law view
| Article 48 (Restriction on Merger) |
|
No ship investment company may be merged with another company.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 49 (Grounds for Dissolution) |
|
A ship investment company shall be dissolved on the grounds falling under any of the following subparagraphs:
| 1. |
Expiration of the period of existence provided for in the articles of incorporation or occurrence of other grounds for dissolution; |
| 2. |
Resolution of dissolution by a general meeting of shareholders; |
| 4. |
Dissolution order or dissolution ruling of the court; |
| 5. |
Revocation of authorization of ship investment business under Article 46. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 50 (Report on Dissolution) |
|
Where a ship investment company is dissolved, its liquidator or bankruptcy administrator shall report such fact to the Minister of Land, Transport and Maritime Affairs within thirty days after the date of dissolution. <Amended by Act No. 8852, Feb. 29, 2008>
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 51 (Entrustment Registration by Minister of Land, Transport and Maritime Affairs) |
|
| (1) |
Where a ship investment company is dissolved for the ground referred to in subparagraph 5 of Article 49, the Minister of Land, Transport and Maritime Affairs shall request the registration of such dissolution to the registry office exercising jurisdiction over the location of such ship investment company. <Amended by Act No. 8852, Feb. 29, 2008> |
| (2) |
When the Minister of Land, Transport and Maritime Affairs requests the registration under paragraph (1), it shall attach documents certifying the ground for registration. <Amended by Act No. 8852, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
CHAPTER VIII SUPPLEMENTARY PROVISIONS
law view
| Article 52 (Special Cases concerning Ship Registration) |
|
Where a ship investment company intends to own a ship and borrows 50/100 or more of the price of such ship (referring to the price of a ship indicated in the building agreement or sale and purchase agreement of a ship) from a foreigner, notwithstanding Articles 2 and 8 of the Ship Act, it may register the ship in a country requested by such foreigner.
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 53 (Special Cases concerning Ship Investment Company for Minority Investors) |
|
| (2) |
Necessary matters concerning the asset management of a ship investment company under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 54 (Public Hearings) |
|
The Minister of Land, Transport and Maritime Affairs shall, where he/she intends to take any disposition falling under any of the following subparagraphs, hold a public hearing: <Amended by Act No. 8852, Feb. 29, 2008>
| 1. |
Revocation of authorization under subparagraphs 2 through 4 of Article 46; |
| 2. |
Revocation of permission under subparagraphs 2 through 5 of Article 47. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 55 (Relationship with other Acts) |
|
| (1) |
Articles 19, 289 (1) and (2), 335 (1) (proviso) and (2), 335-2 through 335-7, 341 through 351, 352 (3), 370, 415-2, 438, 439, 458, 462 and 462-3 of the Commercial Act shall not apply to a ship investment company. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 55-2 (Special Cases concerning Public Ship Investment Company) |
|
| (1) |
Articles 11 through 16, 22 through 27, 28 (limited to a ship management company prescribed by Presidential Decree by considering the size of the asset trusted), 29 through 32, 34 through 43, 48, 50 through 53, 56, 58, 60 through 65, 80 through 83, subparagraphs 2, 3 and 6 through 8 of Article 85, 86 through 95, 181 through 183, 184 (1) and (2), (5) through (7), 185 through 187, 194 through 200, 202 through 206, 229 through 253, and 415 through 425 of the Financial Investment Services and Capital Markets Act shall not apply to a public ship investment company (referring to a ship investment company not falling under a private collective investment vehicle under Article 9 (19) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) and a ship management company (excluding a ship management company entrusted with the operation of assets, such as ships, only by a ship investment company, not a public ship investment company). <Amended by Act No. 9707, May 22, 2009> |
| (2) |
Where the Minister of Land, Transport and Maritime Affairs authorizes under Article 13 to a public ship investment company or permits under Article 31 to a ship management company (excluding a ship management company entrusted with the operation of assets, such as ships, only by a ship investment company not a public ship investment company), it shall consult with the Financial Services Commission in advance. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 55-3 (Special Cases concerning Ship Investment Company Investing in Ships to be Sold for Debt Repayment, etc.) |
|
Articles 6, 10, 15 (2), 25 (2) and 26 (1) shall not apply to a ship investment company, 70/100 or more of the total assets of which are composed of the assets falling under the following subparagraphs:
| 1. |
Ships to be sold for repayment of debt, such as that for a creditor financial institution; |
| 2. |
Ships to be sold for the performance of an agreement after entering into the relevant agreement for improvement of financial structure with a creditor financial institution; |
| 4. |
Ships deemed necessary by the Minister of Land, Transport and Maritime Affairs or the Financial Services Commission to assist corporate restructuring. |
[This Article Newly Inserted by Act No. 9707, May 22, 2009] <<Period of Validity: Dec. 31, 2015>>
CHAPTER IX PENAL PROVISIONS
law view
| Article 56 (Penal Provisions) |
|
Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than five years, or by a fine not exceeding thirty million won:
| 1. |
Any person who obtains authorization under the former part of Article 13 (1) by fraud or other wrongful means; |
| 2. |
Any person who conducts business of a ship investment company without obtaining authorization under the former part of Article 13 (1); |
| 3. |
Any person who borrows funds or issued bonds in violation of the purpose or limit under Article 25; |
| 4. |
Any person who obtains permission under Article 31 (1) by fraud or other wrongful means; |
| 5. |
Any person who conducts business of a ship management company without obtaining permission under Article 31 (1); |
| 6. |
Any person who engages in an act falling under any subparagraph of Article 33 (2). |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 57 (Penal Provisions) |
|
Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than three years, or by a fine not exceeding twenty million won:
| 1. |
Any person who owns or purchases a ship in violation of Article 27; |
| 2. |
Any person who fails to purchase an insurance policy, in violation of Article 28; |
| 3. |
Any person who engages in a transaction in violation of Article 29; |
| 4. |
Any person who conducts business suspended during the period of business suspension after being sentenced to a disposition of business suspension under Article 44 (6) 1. |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 58 (Penal Provisions) |
|
Any person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year, or by a fine not exceeding five million won:
| 1. |
Deleted; <by Act No. 9707, May 22, 2009> |
| 2. |
Any person who fails to provide an investment prospectus under Articles 9 (1) and 15 or who has provided a false investment prospectus; |
| 3. |
Any person who violates an order for disposition under Article 18 (3); |
| 4. |
Any person who fails to deposit the securities with the Korea Securities Depository in violation of Article 36 (2); |
| 5. |
Any person who has fails to manage the assets of a ship investment company by separating them from others in violation of Article 37 (3). |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
law view
| Article 59 (Joint Penal Provisions) |
|
If the representative of a juristic person, or an agent, an employee or any other employed person of a juristic person or individual commits an offense prescribed in any of Articles 56 through 58 in connection with the affairs of said juristic person or individual, not only shall such actor be punished accordingly, but the juristic person or individual shall also be punished by a fine under the same Articles: Provided, That the same shall not apply where the juristic person or individual has not been negligent in paying due attention or supervision on the relevant duties in order to prevent such offense.
[This Article Wholly Amended by Act No. 9707, May 22, 2009]
law view
| Article 60 (Fines for Negligence) |
|
| (1) |
Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding five million won: <Amended by Act No. 9707, May 22, 2009> |
| 1. |
Any person who uses the name of ship investment company or ship management company in violation of Article 5 (2) or 31 (3); |
| 2. |
Any person who changes the authorized matters without obtaining authorization for change in violation of the latter part of Article 13 (1); |
| 3. |
Any person who leases a ship in violation of Article 26 (1); |
| 4. |
Any person who fails to submit the statements, etc. for settlement of accounts in violation of Article 40 (2); |
| 5. |
Any person who fails to prepare the statements, etc. for settlement of accounts in violation of Article 42 (1); |
| 6. |
Any person who fails to send the statements, etc. for settlement of accounts in violation of Article 42 (2); |
| 7. |
Any person who fails to perform an order for submission of data or report under Article 44 (1) or 45 (1); |
| 8. |
Any person who refuses, hinders or evades an inspection under Article 44 (2) or 45 (2); |
| 9. |
Any person who fails to comply with the measures under Article 44 (6) 2 or 3. |
| (2) |
Fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Land, Transport and Maritime Affairs or the Financial Services Commission. <Amended by Act Nos. 8852 & 8863, Feb. 29, 2008; Act No. 9707, May 22, 2009> |
| (3) |
through (5) Deleted. <by Act No. 9707, May 22, 2009> |
[This Article Wholly Amended by Act No. 8821, Dec. 27, 2007]
ADDENDUM
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM<Act No. 6966, Aug. 6, 2003>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 7641, Jul. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Transitional Measures concerning Permission of Ship Management Company)
| (1) |
A ship management company registered under the previous provisions at the time this Act enters into force shall be deemed to have obtained the permission of a ship management company under this Act: Provided, That it shall satisfy the requirements for permission under this Act within three months after the date this Act enters into force. |
| (2) |
Notwithstanding paragraph (1), a previous ship management company that has not satisfied the requirements for permission within three months after the date this Act enters into force may conduct its business of that referred to in Article 34 only as prescribed by Presidential Decree. |
ADDENDUM<Act No. 8223, Jan. 3, 2007>
This Act shall enter into force on the date of its promulgation.
ADDENDA<Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA<Act No. 8821, Dec. 27, 2007>
| (1) |
(Enforcement Date) This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 3 of Article 2, Articles 17 (1) and (2), 30 (2), 31 (1) 7, 36 (2), 44 (6), 45 (3), 53 (1), 55-2 and subparagraph 4 of Article 58 shall enter into force on February 4, 2009. |
| (2) |
(Applicability) The amended provisions of Articles 3 (3) and 6 shall apply to a ship investment company that obtains the first authorization of establishment after this Act enters into force. |
ADDENDA<Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA<Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA<Act No. 9707, May 22, 2009>
| (1) |
(Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) |
(Period of Validity) The amended provisions of Article 55-3 shall remain in effect until December 31, 2015. |
| (3) |
(Transitional Measures) For the purposes of the penal provisions to any act committed before this Act enters into force, the previous provisions shall apply. |
