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Advisory Case on Reviewing the Legality of Expenditures and Dismissals Made Without a Board Resolution by a Redevelopment Association

Advisory Case on Reviewing the Legality of Expenditures and Dismissals Made Without a Board Resolution by a Redevelopment Association

Advisory Case on Reviewing the Legality of Expenditures and Dismissals Made Without a Board Resolution by a Redevelopment Association
Table of Contents

1. The Client's Situation

The client, a redevelopment association, needed prompt legal action in a situation where misconduct by its administrative officer had been confirmed. It spent legal service fees and dismissed the employee without a board resolution, and then requested advice on the legality of these actions. The association was concerned that procedural defects might become an issue, but it judged that swift decision-making was unavoidable in order to proceed with the redevelopment project, which is of a public-interest nature.

Your Legal Team reviewed the matter on the basis of the principle of emergency management of affairs and the system of subsequent ratification. First, it found that urgency was recognized given that immediate response was necessary due to the employee's misconduct. In addition, it determined that both the expenditure of legal service fees and the dismissal had been ratified by a subsequent board resolution, thereby curing the procedural defect. Furthermore, it advised that the spending was within the budget and that the personnel measure, based on objectively justifiable grounds, did not constitute a serious defect.

3. Outcome

Through Your Legal Team's advice, the client gained confidence that the measures could be assessed as having been carried out through lawful procedures, and was able to prevent unnecessary legal disputes within the association. The client also came to recognize the need to refine internal regulations to supplement board resolution procedures in the event of similar situations in the future.

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