[Startup CEOs Must-Read] Procedures for Registered Directors After Term Expiration

Law firm Veat received a request from startup Company A (hereinafter referred to as "the client") to support the process of re-election and retirement registration due to the expiration of the term of office of a director.

The client contacted Law firm Veat, a startup registration law firm, to confirm the legally required procedures as the director’s term expired. Upon receiving the client's request, Law firm Veat first reviewed what procedures were necessary after the director’s term expired.

According to the Commercial Code, the term of office of a director is a maximum of 3 years, and the term can be determined in accordance with the articles of incorporation within the range of a maximum of 3 years. Also, if the term expires before the regular general meeting of shareholders for the business year, the term can be extended until the said regular general meeting.

The term of office of an auditor lasts until the end of the final regular general meeting of shareholders after taking office within 3 years.

Registration Process According to the Circumstances After Director’s Expiration

After the director’s term expires, if the director no longer remains with the company, a retirement registration must be processed. Law firm Veat, after the client confirmed the director's retirement, reviewed the articles of incorporation and provided the necessary documents. Based on this, we supported the swift reflection of the fact of retirement in the registration.

If the existing director decides to continue with the company, a re-election registration must be processed. Re-election is the process of re-appointing the director simultaneously with the expiration of the director’s term, and this process must be carried out within the legally stipulated timeframe.

Especially, if the re-election or retirement registration is not done within 2 weeks after the expiration of the term, a fine will be levied due to non-compliance with the registration deadline, so if the existing director wants to continue performing the duties, it is recommended to quickly seek the help of a registration expert and proceed swiftly.

Law firm Veat confirmed the director’s expiration term, confirmed the expiration of the term in accordance with the articles of incorporation at the time of retirement, and provided detailed guidance on whether the number of directors stipulated in the articles of incorporation was not lacking and what the necessary documents were.

In the case of re-election, we provided guidance on the articles of incorporation and minutes, the minutes of the shareholder’s general meeting for re-election, the director's acceptance of office, a certificate of seal impression, and a resident registration certificate (superannuation) etc., as essential documents.

Startup Registration Partner, Law firm Veat

When operating a startup, there are often cases where changes in director registration are necessary due to the expiration of the management team’s terms. However, many startups do not know these procedures accurately, resulting in registration applications being delayed or exposing them to legal risks.

If you are wondering which option to choose between re-election registration and retirement registration when the director’s term expires, the most fast and accurate method is to seek the help of a registration expert. Law firm Veat, as a law firm specializing in startups, provides the optimal registration service, considering the characteristics and circumstances of startups.

If you have any concerns about director changes such as retirement, re-election registration, feel free to contact Law firm Veat.

This case study can also be checked on the Law firm Veat blog below.

- [Startup CEOs Must Read] Registration Procedures After Director’s Expiration

Thank you.

Law firm Veat