What is self-dealing?

What will be an ideal response?

Under the Revised Model Business Corporations Act (RMBCA), a contract or transaction with a corporate director or officer is voidable by the corporation if it is unfair to the corporation. Contracts of a corporation to purchase property from, sell property to, or make loans to corporate directors or officers where the directors or officers have not disclosed their interest in the transaction are often voided under this standard. In the alternative, the corporation can affirm the contract and recover any profits from the self-dealing employee. Contracts or transactions with corporate directors or officers are enforceable if their interest in the transaction has been disclosed to the corporation, and the disinterested directors or the shareholders have approved the transaction.