Legal Question in Business Law in California

Re: Corporation Transactions

Departments of corporations don't "own" funds; the funds of a corporation are the property of the entire corporation. If the directors and officers of the corpooration establish budgets and policies that call for Department A to absorb certain costs within its budget, and the departmental managers figure out a way to get Department B's budget tapped for some of those costs, this is not "illegal" or "not allowed" under some law or policy that can be enforced in court. The deparment managers might get disciplined by the top management for fiddling with the corporation's budget rules, but this is a matter of private policy, not law.