If a president of small corporation were to buy land that the business sets, would that be a conflict?

Question

I own 43% of a corporation that operates a business on a certain piece of property. This property was recently purchased by a stockholder that has 51%. It was purchased individually by him. Would this be a conflict of interests or against any laws, where he is not acting in the best interest of the corporation? The corporation could have easly afforded this purchase

Answer 1

GWat,

This is actually the correct thing to do from a tax and liability perspective. It would have been appropriate to offer you the opportunity to purchase the land along with him if you were so inclined and had the resources to do so. Other than that, there is no breach or conflict.

Good Luck,
Dana B.

Answer 2

It should be OK!