Wednesday, April 2, 2014

Is it improper for an officer or director of a private LLC to take a personal loan from an investor in the corporation?

Is it improper for an officer or director of a private LLC to take a personal loan from an investor in the corporation?
Per NASD and the SEC an act doesn't have to be illegal to be improper. Anytime there can be the insinuation of conflict of interest it is improper. In this case it is improper unless there existed a prior documented relationship that supports the situation of a personal loan between the two.

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