By | 2017-09-14T09:54:03+00:00 14th September 2017|

An illegal business practice in which a majority shareholder or high-level company insider directs company assets or future business to themselves for personal gain. Actions such as excessive executive compensation, dilutive share measures, asset sales and personal loan guarantees can all be considered tunnelling. The common threat is the loss to the minority shareholders, whose ownership is lessened or otherwise devalued through inappropriate actions that harm the overall value of the business. Tunnelling was prevalent in the Czech Republic in the 1990s and even more recently.