Dismissal of appeal: Article 374 KH applies only to organizational relations, not employment relations after board removal.

The Supreme Court dismissed the cassation appeal filed by the employer against a lower court ruling in favor of the employee. The employee, a board member, was removed from his board function in April 1998 while still employed under a labor contract, and the employer subsequently terminated the contract without notice in January 1999. The court held that Article 374 of the Commercial Code governs only organizational relations and ceases to apply upon the removal from the board, meaning the termination was governed by labor law principles rather than commercial code provisions.