Self-dealing
Definition
Action taken by a corporate fiduciary done for that person's personal gain, rather than for the benefit of the corporation. Examples include taking a corporate opportunity, using corporate funds as a personal loan or purchasing company stock based on inside information received through being in the position of a fiduciary. Self-dealing is a violation of the duty of loyalty.
See also
Definition from Nolo’s Plain-English Law Dictionary
Taking part in a transaction or business deal that benefits oneself rather than a person or company to whom one owes a fiduciary duty. For instance, a director of a corporation owes a duty to the corporation not to engage in transactions that benefit the director rather than the corporation. Self-dealing can also apply to owners of a partnership or limited liability company who do not inform their co-owners of business opportunities that should belong to the company.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm
