A number of people are directors of a company (Company A).They routinely pay themselves million po
A number of people are directors of a company (Company A).They routinely pay themselves million po
A number of people are directors of a company (Company A).They routinely pay themselves million pounds of salaries and bonuses every year.A few years ago the company acquired another company (Company B).This second company ran a business whereby a large number of people would pay a sum of money (£10 - £100) from January to November,and would receive a payout at the end of December equal to the amount they paid in.The directors of Company A decided to take the money from Company B and pay down some debts of Company A,including paying themselves another bonus.They then put Company B into receivership claiming there were no assets in Company B's accounts to make the payout in December.Is this legal?Is it fraud?Is this ethical or fair and why?
I think it can, as long as the two companies they belong to a director, then director has the right to charge. But I do not understand United unlawful. This is certainly not ethical.