SHIP INVESTMENT COMPANY ACT

Chapter 1 General Provisions

Article 1(Purpose) #

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 on Dec. 27, 2007]

Article 2(Definitions) #

The terms used in this Act shall be defined as follows: <Amended on Feb. 29, 2008; Mar. 23, 2013>

1. The term "ship investment company" means a company that is established under this Act for the purposes of investing assets in ship (referring to ship 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 investment management company" means a company that engages 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 Oceans and Fisheries under Article 31;

3. The term "custody company" means a trust company under the Financial Investment Services and Capital Markets Act, which is engaged in business to custody the assets and other business related to such custody 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 on Dec. 27, 2007]

Article 3(Ship investment company) #

(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.

SHIP INVESTMENT COMPANY ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Ship investment company) #

Article 4(Application of the Commercial Act) #

Article 5(Use of name) #

Article 6(Period of existence) #

Article 7(Promoters) #

Article 8(Articles of incorporation) #

Article 9(Subscription for underwriting stocks) #

Article 10(Restriction on exceptional incorporation) #

Article 11(Legal fiction of appointment of directors and auditors) #

Article 12(Matters to be registered for establishment) #

Article 13(Authorization of ship investment business) #

Article 13-2(Authorization of exclusive ship investment business for authorized ship) #

Article 14(Invalidation of authorization) #

Article 14-2 #

Article 15(Issuance of shares) #

Article 16(Terms of issuance) #

Article 17(Listing of stocks) #

Article 18(Restrictions on stockholding) #

Article 19(Restriction on acquisition of treasury stocks and pledge) #

Article 20(Qualifications of directors) #

Article 21(Duties of board of directors) #

Article 22(Convocation of meetings of board of directors) #

Article 23(Written resolutions) #

Article 24(Scope of business) #

Article 25(Borrowing of funds and issuance of bonds) #

Article 26(Chartering) #

Article 27(Restriction on ownership of ships) #

Article 28(Buying insurance policy) #

Article 29(Limitations on transactions) #

Article 30(Entrustment of duty) #

Article 31(Permission of ship investment management company) #

Article 32(Restriction on concurrent engagement of ship investment management company) #

Article 33(General standards for acts of ship investment management company) #

Article 34(Detailed standards concerning permission and business of ship investment management company) #

Article 34-2(Minimum amount of net assets of ship investment management company) #

Article 34-3(Responsibilities of ship investment management company) #

Article 35(Urgent termination of agreements) #

Article 36(Entrustment of asset custody) #

Article 37(Obligations of custody companies) #

Article 38(Preparation of statements for settlement of accounts) #

Article 39(Audit reports) #

Article 40(Approval of statements for settlement of accounts) #

Article 40-2(Special provisions concerning approval of statements for settlement of accounts) #

Article 41(Distribution of profits) #

Article 42(Keeping of statements for settlement of accounts) #

Article 43(Report of statement of asset management) #

Article 44(Supervision and inspection) #

Article 45(Supervision by Financial Services Commission) #

Article 46(Revocation of authorization of ship investment business) #

Article 47(Revocation of permission of ship management companies) #

Article 48(Restriction on merger) #

Article 49(Grounds for dissolution) #

Article 50(Report on dissolution) #

Article 51(Entrustment registration by Minister of Oceans and Fisheries) #

Article 52(Special cases concerning ship registration) #

Article 53(Special cases concerning ship investment company for minority investors) #

Article 53-2(Special cases concerning ship investment companies targeting at professional investors) #

Article 54(Hearings) #

Article 55(Relationship to other statutes) #

Article 55-2(Special cases concerning public ship investment company) #

Article 55-3(Special cases concerning ship investment company investing in ship to be sold for debt repayment) #

Article 56(Penalty provisions) #

Article 57(Penalty provisions) #

Article 58(Penalty provisions) #

Article 59(Joint penalty provisions) #

Article 60(Administrative fines) #