Shareholders may resolve to dismiss a corporate statutory auditor (Article 280, (1) of theCommercial Code) before expiration of the term. However, a corporate statutory auditor has the right to claim to the company compensation for damages due to dismissalwithout justifiable cause. When a corporate statutory auditor wishes to state his/heropinion at the shareholders’ meeting about the proposal for dismissing him/her, his/heropinion shall be summed up in a proxy statement that is distributed to shareholders(Article 275-3 of the Commercial Code).
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