3 ms·

It gets into obscure territory... private equity & various types of "corporate structure" can end creating (or be drawn specifically to create) serious conflic

by netcan 7y ago

It gets into obscure territory... private equity & various types of "corporate structure" can end creating (or be drawn specifically to create) serious conflicts of interest. They are not a single, uniform interest group and "self dealing" means screwing (fiduciary failure) someone.

hef19898 7y ago
In Germany you can basically go to jail for "stealing" money from a company you own to 100% (in some cases). Self-Dealing can be allowed for managing directs who are also majority owners (e.g. I'm allowed in certain limitis to sign contracts between me and my own company representing both "parties"). But still there are limits. No idea how this works in the US, but I can imagine that there are limits.
- my123 7y ago
  Of course, you can basically go to jail for "stealing" money from a company you own to 100%. Being able to do so makes a creditor unable to recover their money in limited-liability companies (a clear majority).
  - hef19898 7y ago
    Which also makes perfectly sense, if you ask me!