Actually, they literally do have a moral and fiduciary duty to their investors to spend money wisely. The article describes it well.
I'm not a lawyer, but that's what I've been advised. You must adhere to good judgement when spending the company's money or people can and will come after you on a civil or criminal level.
That's a pretty broad scope, and corporate hot tubs are probably not beyond the pale, but you can't take investor's money and put it into your bank account and say "Sorry the company has folded". Embezzlement and fraud are real crimes that you can get real convictions for, and investors can file civil suit for much less than full on embezzlement - witness Benchmark's suit against Kalanick/Uber.
You don't have to spend it wisely, just not deliberately unwisely (e.g. put it in your own account), and I believe the 'deliberate' is much more important there than 'unwisely'.
As long as you can make it sound kind of reasonable that your corporate hot-tub would have attracted the right talent, it doesn't sound nearly unreasonable.
Exactly. The things I've seen as far as blowing investor money is cringe worthy. But almost never have I seen a successful lawsuit by investors except I. The case of outright theft or fraud.
I'm not a lawyer, but that's what I've been advised. You must adhere to good judgement when spending the company's money or people can and will come after you on a civil or criminal level.
That's a pretty broad scope, and corporate hot tubs are probably not beyond the pale, but you can't take investor's money and put it into your bank account and say "Sorry the company has folded". Embezzlement and fraud are real crimes that you can get real convictions for, and investors can file civil suit for much less than full on embezzlement - witness Benchmark's suit against Kalanick/Uber.