posted by sabi .
One of the Directors of a property maintenance company has a piece of land for sale and the company would like to buy it from him. The land is thought to be worth between $80,000 and $100,000. Can they just make an offer for it?
Thanks for your help!
I am not a lawyer, but have an opinion that may be pertinent to this question. The purchase of a property from a mamber of the Board of a company, by the making and accepting of an offer, is a transaction in which a conflict of interest may exist. There is a strong possibility that the property will be sold at more than the true market value, thus enriching the Director by an excessive amount at the expense of shareholders. See
It may help if the value of the property is first accurately established by at least two independent appraisers and the owner-Director recuses himself or herself from the decision to make the offer.
thank you very much, this is very helpful!