1. Plain Graft
Members of the board of directors help themselves to the
earnings that otherwise would go to other stockholders.
They also manipulated the earning of the corporation and route
them to the class of stock dividend for class B common shares
where their holdings are insignificant but voting both a stock
dividend and a cash dividend to class A common shares where
their shares would its substantial.
2. Disloyal Selling
Its a corporate practice that involves conflict of interest. And it
happens when this percent is compelled to decide which of the two
corporation integrates he is under obligation to protect.
3. Insider trading
It occurs when a broker or another person with the confidential
information uses that information to trade its seeks and securities,
thus giving him an unfair advantage over the general public which
has not had access to that information.
4. Routing Purchases through directors pockets
The board of directors of company A creates it separate corporation
(Company B) where they are the controlling stockholders. Company
B sells the supplies and materials that company A needs.
This practice is unethical because the profits of other stockholders
would be corresponding reduced with the extra amount paid in
excess of the normal market prices.
5. Negligence of Duty
A failure of the member of the Board of Directors more common
than breach of trust is neglect of duties they have been elected for,
that is to attend the board meetings regularly. It is only in regular
attendance that they can protect the rights and interests of the
stockholders. If they do not attend meetings, they betray the trust
that the stockholders placed on them.