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)].
Legal Definition list
Related Legal Terms
- Abnormal Profits
- Accounting for Profits
- Accumulated Earnings and Profits
- Acta Exteriora Iudicant Interiora Secreta
- Adjusted Underwriting Profit
- Appropriate Secretary
- Assessment for Profits
- Assistant Secretary of Defense for Public Affairs
- Central Nonprofit Agency
- Charitable or Nonprofit Activity (Gaming Law)