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I feel like there is a lot of misinformation here and am compelled to comment, I’ve started and administered two corporations. What you’re describing as self d
by oceanplexian 4y ago
I feel like there is a lot of misinformation here and am compelled to comment, I’ve started and administered two corporations.
What you’re describing as self dealing isn’t illegal, thousands of corporations are run this way every day as long as taxes are paid correctly on the fair value of any transactions between the companies in question. It doesn’t even have to be profitable, Tesla could categorize the work they are doing for Twitter 100 different ways; marketing, R&D, team building, training, whatever.
As for minority shareholders, they have completely arbitrary rights depending on the bylaws, articles of incorporation, etc. If they are lucky, they might be able to periodically vote for board members given the right class of shares. Otherwise they have pretty much 0 input into how a company is run.