There Are Two Types of Self-Dealing in Which Officers and Directors

question 58

Essay

There are two types of self-dealing in which officers and directors might engage. List and describe both types, as well as the penalty for doing so.

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Definitions:

Employers

Individuals or organizations that hire people to perform work in exchange for compensation.

Supremacy Clause

Article VI, Section 2 of the U.S. Constitution, which allows a Supreme Court ruling to be binding on state courts if involving a constitutional issue. The clause reads: “This Constitution, and the Laws of the United States which shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any state to the contrary notwithstanding.”

Laws

The system of rules that a country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Congress

The national legislative body of a country, particularly in the United States, responsible for making laws.