Re:Ask HN: My CEO has been "stealing" money from the company...
by gnicholas on Tuesday May 28, 2024 @01:58PM
(#40503532)
Sounds more like embezzlement than fraud, but a key question will be what powers the CEO that don't require shareholder votes. For example, if an employee came to him and asked for 2 weeks of pay advance due to some emergency, could he grant it unilaterally? Obviously it's different since there's a conflict of interest when he's doing it for himself, but it's still a relevant data point. Check your bylaws to see if this sort of thing is spelled out.
Although, we are trying to understand if this could be considered as fraud so we can remove them with a legally solid reason, and confiscate their shares.