Secret Profit Law and Legal Definition

Secret profit is a profit or advantage made by a promoter, director, or officer of a corporation because of his official position. Secret profit is made without bringing the transaction to the attention of the stockholders.

A profit is not secret or unlawful if all the parties having a direct interest know of it and assent to it, or do not repudiate it. [Hays v. The Georgian, Inc., 280 Mass. 10 (Mass. 1932)].