Hi all,
New to this place, so please go easy on me!
From my understanding commercial legislation will always overide an agreement that isn't in line with said legislation.
Here is my question:
Can a director (who is also a shareholder) write up an agreement that stipulates revenue/profit generated by him/her is only then entitled to be dispursed to said person?
Say hypothetically this shareholder closes a project worth $1mil. And the profits for this project would only go to the director/shareholder that closed and did this project.
I understand that there might be additional questions like who is doing the work, are there staff working on this, etc. I just want to know at a very base level if this type of agreement can actually co-exist within commercial law under a private company entity.
It sounded fishy when I heard it and hence why I am asking the question.
Thank you in advance!
Z.
New to this place, so please go easy on me!
From my understanding commercial legislation will always overide an agreement that isn't in line with said legislation.
Here is my question:
Can a director (who is also a shareholder) write up an agreement that stipulates revenue/profit generated by him/her is only then entitled to be dispursed to said person?
Say hypothetically this shareholder closes a project worth $1mil. And the profits for this project would only go to the director/shareholder that closed and did this project.
I understand that there might be additional questions like who is doing the work, are there staff working on this, etc. I just want to know at a very base level if this type of agreement can actually co-exist within commercial law under a private company entity.
It sounded fishy when I heard it and hence why I am asking the question.
Thank you in advance!
Z.