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> Company 1: The company went bankrupt, founder renamed the company, started a new company with the same name as the original, transferred some assets for penni
by killtimeatwork 6y ago
> Company 1: The company went bankrupt, founder renamed the company, started a new company with the same name as the original, transferred some assets for pennies on the dollar. It later went public, but collapsed in the dot-com crash.
Is that legal? It looks like the CEO of the company willingly harmed the company's interest to enrich himself, which is basically fraud.
- icedchai 6y agoMy understanding is that it was done in a legal manner. The majority of the investors were "friends" and had to give sign off. They got a smaller stake in the new venture and promise of larger returns, etc.