self-dealing

Self-dealing is when a person with a fiduciary duty to a company takes action to gain personal benefit, instead of for the benefit of the company. For people who may not have a direct fiduciary duty, it also refers to a person who buys or sells stocks before relevant information comes to the public, with the help of insiders of any applicable field. The self-dealing transaction is not solely voidable since the person who has a fiduciary duty to the corporation, according to the Delaware General Corporation Law (DGCL) Title 8, Chapter 1, Section 144 , the New York Business Corporation Law (NYBCL), Section 713, and the California Corporation Code Section 310 .

[Last reviewed in April of 2025 by the Wex Definitions Team ]

Keywords

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