Legal Q&A

Tired of non-expert, ad-driven answers to your legal questions?
Daeryun's specialist attorneys are here to answer.

I feel frustrated and angry regarding accounting fraud. I would like to file a lawsuit regarding accounting fraud.

I am a shareholder of a certain company listed on the KOSDAQ and a loyal shareholder who has watched the company's growth for a long time.... I suddenly received a notice of business closure from the company's representative. A simple closure alone would not matter, but because of the closure the stock price hit rock bottom and my seed money became worthless... Then I came to learn that the representative director had committed embezzlement, so I need to obtain evidence and, with that evidence, I would like to proceed with an accounting fraud lawsuit.

accounting fraud

Answer

Published: 2025-04-11

Author : Kuk Il KIM

Hello, accounting fraud we provide our response on this matter. accounting fraud the most important thing in relation to this lawsuit is to collect objective and legally valid, reliable evidence.

In addition, you should first conduct a legal review to confirm whether the representative director's embezzlement actually remains in the books or records.

After that procedure, if the embezzlement is confirmed to be true, you should secure even more definite evidence through the inspection of the accounting books and an application for a provisional disposition for copying.

According to the Commercial Act, 1. a shareholder holding shares corresponding to 3 out of 100 or more of the total number of issued shares may request, by a written document stating the reasons, the inspection or copying of the accounting books and documents, and 2. the company may not refuse this unless it proves that the shareholder's request under paragraph 1 is improper.

Our firm assists corporate clients by forming a specialized TF team composed of attorneys who are qualified accountants, and accountants specializing in corporate litigation.

It appears important to prove and assert, as soon as possible, the representative director's embezzlement and accounting fraud allegations, together with the damage suffered by many shareholders.

Our firm's accounting audit group devotes its efforts to corporate advisory and litigation assistance. If you need help, we invite you to request our assistance.