Monday, July 7, 2014

Can an owner of a corporation purposely take money from a corporation so its shareholders receive nothing?

Can an owner of a corporation purposely take money from a corporation so its shareholders receive nothing?
The stockholders ARE the owners of a corporation.


Answer Technically no, because of what the earlier answer says, but it is possible for the board, majority shareholders, or officers to misappropriate the corporate assets to enrich themselves at the expense of the corporation and other shareholders. This is why courts invented the "derivative lawsuit."

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