In order to have a special purpose entity (SPE) not be consolidated, there needed to be a 3% outside interest. The CEO was signing up neighbors to get 3% outside interest and had the board sign off such that he could have an interest in these entities. What was the main issue in these transactions

Answer rating: 100% (QA)

The main issue in the transactions involving the CEO signing up neighbors to obtain 3 outside interest in special purpose entities SPEs and having the ... View the full answer