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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111465
Experience:  20+ Years of Employment Law Experience
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Is it a conflict board member of a privately held company to

Customer Question

Is it a conflict for a board member of a privately held company to be compensated for business development activities if said compensation is disclosed and is in line with typical compensation that would be paid to an outside party?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
A board member of a privately held company may be paid for their business development activities with the knowledge and consent of the board. So, as long as the board knows and approves of the activities, the board member may be compensated for their work and activities.