Legal Question in Securities Law in California

Does a CEO of a corporation need to disclose that he has knowledge of a personal relationship ongoing between one of the other officers of the corporation and an employee to the board of a venture capital group that they are requesting funding from?

Asked on 10/06/11, 1:48 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I'd say not unless the facts known to the CEO could have a material effect on the value of the company or the desirability of the proposed investment. Indeed, an argument could be made that the CEO should not disclose private facts of this sort.

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Answered on 10/06/11, 3:56 pm

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