Q&A: How to hold companies under bankruptcy protection accountable?
Question by pshao01: How to hold companies under bankruptcy protection accountable?
What prevents a company from borrowing a ton of money, spending it all, declaring bankruptcy, and never paying back its creditors?
Details: say the CEO gets a huge “salary” (this is actually borrowed money), buys himself a bunch of toys, then declares bankruptcy and never repays the money. What is the punishment for said CEO?
Answer by bobbino11
Im assuming NOTHING.
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