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Can you explain the pricnciple of director/officer being prohibited

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with dealing with the company...
Can you explain the pricnciple of director/officer being prohibited with dealing with the company if he/she has personal interest in stake?
Submitted: 6 years ago.Category: Business Law
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Answered in 12 minutes by:
12/1/2011
Business Lawyer: Dwayne B., Attorney replied 6 years ago
Dwayne B.
Dwayne B., Attorney
Category: Business Law
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Experience: Practicing for over 20 years and helped a number of businesses with litigation.
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Customer reply replied 6 years ago
Well I am asking why the officer of the company cannot make any deal/transation with that company (that he is officer of) if he has any material interest in this deal?
Business Lawyer: Dwayne B., Attorney replied 6 years ago
Because it would be, or at least appear to be, a conflict of interest. The officer/director has a duty to the company to do only those things which are in the company's best interest. Self dealing inherently is not in the company's best interest because you can't do what is best for the company AND what is best for yourself.

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