Self-Dealing legal definition of Self-Dealing. Self-Dealing synonyms by the Free Online Law Dictionary.

The conduct of a trustee, an attorney, or other fiduciary that consists of taking advantage of his or her position in a transaction and acting for his or her own interests rather than for the interests of the beneficiaries of the trust or the interests of his or her clients.

Self-dealing is wrongful conduct by a fiduciary. A fiduciary is a person who has duties of Good Faith, trust, special confidence, and candor toward another person. Examples of fiduciary relationships include attorneys and their clients, doctors and their patients, investment bankers and their clients, trustees and trust beneficiaries, and corporate directors and stockholders. Fiduciaries have expert knowledge and skill, and they are paid to apply that knowledge and skill for the benefit of another party. Under the law, a fiduciary relationship imposes certain duties on fiduciaries because a fiduciary is in a special position of control over an important aspect of another person's life.

One important duty of a fiduciary is to act in the best interests of the benefited party. When a fiduciary engages in self-dealing, she breaches this duty by acting in her own interests instead of the interests of the represented party. For example, self-dealing occurs when a trustee uses money from the trust account to make a loan to a business in which he has a substantial personal interest. A fiduciary may make such a transaction with the prior permission of the trust beneficiary, but if the trustee does not obtain permission, the beneficiary can void the transaction and sue the fiduciary for any monetary losses that result.

The laws pertaining to self-dealing are found mainly in case law, judicial opinions, and some statutes. Case law authorizes the recovery of monetary damages from the self-dealing fiduciary.

One of the most notable statutes relating to self-dealing is 26 U.S.C.A. § 4941 (1969), which allows the Internal Revenue Service to impose a five percent excise tax on each act of self-dealing by a disqualified person with a private, nonprofit foundation. Disqualified persons include substantial contributors to the foundation, foundation managers, owners of more than 20 percent of the foundation's interest, and members of the family of disqualified persons. If the self-dealing act is not timely corrected, the IRS may impose on the self-dealer an additional 200 percent excise tax on the amount of the transaction.

Cross-references

Attorney Misconduct.

self-dealing n. in the stock market, using secret "inside" information gained by being an official of a corporation (or from such an officer) to buy or sell stock (or real property wanted by the corporation) before the information becomes public (like a merger, poor profit report, striking oil). Self-dealing can also apply to general partners of a limited partnership who do not inform limited partners of business opportunities which should belong to the partnership. Self-dealing can result in a lawsuit for fraud by shareholders. Self-dealing with securities is a crime under the Federal Securities Exchange Act.

Mentioned in	?		References in periodicals archive	?		Legal browser	?		Full browser	?
corporation Corporations Derivative Action dissociation fiduciary finances Limited Liability Company partnership Piercing the Corporate Veil shareholders' agreement Winding Up	They have stood up against numerous interests that would loot the public treasuries, against self-serving and self-dealing politicians, against those who would divide Californians by race, or ethnicity, or class. Why we do what we do by Holwerk, David / The Masthead Cohen and Andrew Roos, both shareholders, brokers and descendants of the firm’s founding principals, for engaging in a transaction “tainted with fraud, illegality and self-dealing. Sour Suit Over GVA Williams Sale by Dana Rubinstein / The New York Observer 507(c), and the division will not be treated as a sale, will not constitute an act of self-dealing under Sec. Guidance issued on dividing CRTs, assisting divorcing couples by Sherr, Eileen Reichenberg / The Tax Adviser	self-assurance self-assured self-centered self-centred self-command self-communing self-communion self-condemnatory self-condemned self-confident self-conquest self-conscious self-consciousness self-consequence self-consistent self-contained self-containment self-content self-contradiction self-control self-controlled self-convicted self-conviction self-counsel self-criticism Self-Dealing Self-defence Self-Defense self-denial self-denouncing self-denunciatory self-derived power self-determination self-determined self-determined being self-directing self-direction self-discipline self-disciplined self-doubt self-effacing self-esteem self-esteeming self-evident self-evident proposition self-evident truth self-exaltation self-examination Self-Executing Self-Executing Treaty self-existent	self-correcting self-correcting Self-Correcting Automatic Navigation self-correction self-correction Self-Correction Program self-corrections self-corrections self-corrective self-corrective self-corrects self-corrects self-counsel self-coved Self-created self-creating self-creation self-critical self-critical self-critically self-criticism self-criticism self-criticisms self-criticisms self-cultivation Self-culture self-cure self-curing resin self-curing resin self-curing resin Self-Dealing self-deceit self-deceits self-deceived self-deceiver self-deceivers self-deceiving self-deception self-deceptions self-deceptive self-deceptively Self-Declaration of Conformance self-defeating Self-Defeating Behavior self-defeating personality (disorder) self-defeating personality (disorder) self-defeating personality (disorder) self-defeating personality (disorder) Self-defeating personality disorder Self-defeating personality disorder self-defence self-defence self-defence Self-defence (law) Self-defence (law) Self-defence (law) Self-Defence Force Self-Defence Force Self-Defence Forces Self-Defence Forces Self-Defending Network

Mentioned in

References in periodicals archive

Legal browser

Full browser

corporation
Corporations
Derivative Action
dissociation
fiduciary
finances
Limited Liability Company
partnership
Piercing the Corporate Veil
shareholders' agreement
Winding Up

They have stood up against numerous interests that would loot the public treasuries, against self-serving and self-dealing politicians, against those who would divide Californians by race, or ethnicity, or class.

Why we do what we do by Holwerk, David / The Masthead

Cohen and Andrew Roos, both shareholders, brokers and descendants of the firm’s founding principals, for engaging in a transaction “tainted with fraud, illegality and self-dealing.

Sour Suit Over GVA Williams Sale by Dana Rubinstein / The New York Observer

507(c), and the division will not be treated as a sale, will not constitute an act of self-dealing under Sec.

Guidance issued on dividing CRTs, assisting divorcing couples by Sherr, Eileen Reichenberg / The Tax Adviser

self-correcting
self-correcting
Self-Correcting Automatic Navigation
self-correction
self-correction
Self-Correction Program
self-corrections
self-corrections
self-corrective
self-corrective
self-corrects
self-corrects
self-counsel
self-coved
Self-created
self-creating
self-creation
self-critical
self-critical
self-critically
self-criticism
self-criticism
self-criticisms
self-criticisms
self-cultivation
Self-culture
self-cure
self-curing resin
self-curing resin
self-curing resin

Self-Dealing

self-deceit
self-deceits
self-deceived
self-deceiver
self-deceivers
self-deceiving
self-deception
self-deceptions
self-deceptive
self-deceptively
Self-Declaration of Conformance
self-defeating
Self-Defeating Behavior
self-defeating personality (disorder)
self-defeating personality (disorder)
self-defeating personality (disorder)
self-defeating personality (disorder)
Self-defeating personality disorder
Self-defeating personality disorder
self-defence
self-defence
self-defence
Self-defence (law)
Self-defence (law)
Self-defence (law)
Self-Defence Force
Self-Defence Force
Self-Defence Forces
Self-Defence Forces
Self-Defending Network

Self-Dealing

Further readings

Cross-references