4 ms·
Same in Lithuania, not a problem, if price for renting is like market price, else, it would be interesting to local authorities.
by andrejuseu 8y ago
Same in Lithuania, not a problem, if price for renting is like market price, else, it would be interesting to local authorities.
- mosselman 8y agoHow is this not a problem? There is a huge conflict of interest in decisions about location, rent negotiations, etc.
- yani 8y agoIs conflict of interest illegal?
- deleted 8y ago[deleted]
- mosselman 8y agoI said 'problem', not 'illegal'. Other shareholders/boards/investors/employees should care.
- verganileonardo 8y agoRent should be similar to market price for the region. Regarding location, the family wants the store to the be sucessfull for 2 reasons: (1) the rent period is going to be longer and (2) they own the retailer and want to invest in viable stores!
- conanbatt 8y agoIf rent were the same, then it wouldnt happen as often, because any slightly better deal will make the owner of the property lose out. Rent on self-owned is definitely higher than market price. It has to be for the transaction to make sense.
- andrejuseu 8y agoAs somebody mentioned, if you own a building as a shareholder in new company, and you have more shareholders (not one shareholder), you can buy rent from it as long as price is in market. Company rents office from other company, you can have as many companies as you want.
- code4tee 8y agoYou are thinking about tax issues not issues of fiduciary duty. The market value issue is to make sure you’re not illegally funneling money between entities without proper taxation. You generally couldn’t, for example, transfer significant wealth to a friend without high taxes by selling them something for a dollar When it’s market value is $10 million. This issue here is completely different.