3 ms·

Is self dealing illegal for private companies? What security markets were involved? I never heard of any prosecution of gross mismanagement of VC funds even w

• Spooky23 7y ago
  WeWork has a lot of debt, and there are a lot of fraud scenarios if risks were misrepresented to bond holders. Given the scale of recklessness and insanity here, I’m sure there are all sorts of problems with the firm.
  • deleted 7y ago
    [deleted]
• mytailorisrich 7y ago
  Self-dealing is a breach of fiduciary duties and can apply to work for all companies, not just publicly traded ones. In fact it does not just apply to work within a company. See: https://www.investopedia.com/terms/s/self-dealing.asp https://www.investopedia.com/terms/s/self-dealing.asp
  • danielisaac 7y ago
    This is a slight oversimplification. Self-dealing can create a presumption of unfairness, but it's rebuttable under certain circumstances. For example, if Adam had disclosed the transaction to the board and the board authorized it, it wouldn't be a breach. Likewise, if Adam can demonstrate the complete fairness of the transaction (a high bar), then he could be in the clear. It will largely depend on the AG's investigation. See Delaware General Corporate Law § 144: https://codes.findlaw.com/de/title-8-corporations/de-code-sect-8-144.html https://codes.findlaw.com/de/title-8-corporations/de-code-se...