I feel like schemes like this warrant a law that you’re failing your fiduciary duty as a company owner and can be sued by any of the stakeholders for it if you can’t prove failure to at least break even is due to genuine misfortune. Not even gross incompetence, that should just get you sacked with a dunce cap on top of having the company broken off and sold to a bidder that isn’t hellbent on stripping it for parts.
That or company owners are only allowed to draw funds from the company’s profits and funds coming from anywhere else, including from layoffs and corner cutting, are seized at 150% the value stolen and the company owners involved get treated as though they had committed embezzling so long as the books can indicate that the executives and owners drew more in compensation than was recorded as profit.
I feel like schemes like this warrant a law that you’re failing your fiduciary duty as a company owner and can be sued by any of the stakeholders for it if you can’t prove failure to at least break even is due to genuine misfortune. Not even gross incompetence, that should just get you sacked with a dunce cap on top of having the company broken off and sold to a bidder that isn’t hellbent on stripping it for parts.
That or company owners are only allowed to draw funds from the company’s profits and funds coming from anywhere else, including from layoffs and corner cutting, are seized at 150% the value stolen and the company owners involved get treated as though they had committed embezzling so long as the books can indicate that the executives and owners drew more in compensation than was recorded as profit.