The CEO of a penny stock company "loans" the company money by taking out a loan and putting the money in the bank. He later complains when employees are paid from the bank account claiming that was HIS money. *throws hands in air*
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Is he entitled to be paid before the employees are? Does he have a claim on any part of the bank account? Hasn't he just "invested" in the company like every other share holder?
He took out a Home Equity Line of Credit and used that money to "loan" the copmpany operating capital. The employees are paid from the corporate checking account which is where he deposited the funds and where he wants the funds returned from.
Depends how he borrowed the money, if he did it with a corporate line of credit it might be on the level, otherwise it could be some form of self dealing since he has to pay himself back for his loans. This might be acceptable in a small private company but not in one that is public.
