When shareholder-managers pay themselves excessively high salaries or have the corporation pay their personal credit card bills,this is an example of:

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Transfers of corporate assets to shareholders for less than fair market value (called looting)also defraud creditors.For example,shareholder-managers loot a corporation by paying themselves excessively high salaries or by having the corporation pay their personal credit card bills.When such payments leave insufficient assets in the corporation to pay creditors' claims,a court will hold the shareholders liable to the creditors.

When Shareholder-Managers Pay Themselves Excessively High Salaries or Have the Corporation