Commentary

110.4 Transactions involving directors, employees and consultants

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

110.4 Transactions involving directors, employees and consultants

| Commentary

110.4 Transactions involving directors, employees and consultants

The provisions regarding transactions involving directors, employees and consultants fall broadly into two categories. The first set of terms is designed to prevent the board of directors draining the company by voting lucrative benefits to themselves, their families, friends or associates. This is unlikely to be a big issue in the case of a small private limited company where all the shareholders are also directors, although it will be of much greater significance in a larger enterprise, such as a corporate joint venture, or where the company is being bankrolled by private equity

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