Legal Question in Business Law in Delaware

Re: Donations to Corporations

Officers and directors in a company have a "duty of loyalty" to the company. This means that they must act in the best interest of the company, which benefits all stockholders. If an officer gives away assets, or does "under the table" deals, they are violating this duty. They are subject to be sued by the shareholders.

You should make sure you have your facts straight before taking any action. The amount of money would need to be significant, for example buying them lunch would probably not qualify as an "off the books" transaction.

Re: Donations to Corporations

My previous reply was intended for a different question. My apology.

As to this question, non-profit corporations regularly accept donations. They must comply with formalities of incorporation, which include filing annual reports, and filings with the Attorney General of the state of Massachusetts (my response is as to Massachusetts corporations, as I am not licensed in Delaware). For a properly set up non-profit corporation, donations would be tax deductable.

If the corporation is a for profit corporation, there may be limitations, depending on the kind of company (for example, a corporation set up to support a political candidate). Whenever you are handling transactions that are "unusual" (for example, donations to a "for profit" corporation), you should consult with an attorney to explain the particulars of teh transactions, so that you can get advice that is specific to the transactions you contemplate. General advice may not apply in your specific situation.