Directors and officers are self-dealing when they make decisions that violate their corporate duty of loyalty.

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When directors or officers violate their duty of loyalty,they are self-dealing.Directors or officers can engage in two types of self-dealing.The first form of self-dealing,called business self-dealing,occurs when a director or officer makes decisions that benefit other companies with which he has a relationship.The second form of self-dealing,called personal self-dealing,occurs when a director or officer makes business decisions that benefit her personally.

Directors and Officers Are Self-Dealing When They Make Decisions That