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Bribery ?

Bribery ?

Postby PhD » Thu May 07, 2015 3:45 pm

I am owner of UK company from London. I am not UK citizen, I live outside UK. We are
selling sports equipment under our private brand, which we manufacture in EU
factory. We have sales network in several countries but don't have any sales in UK
yet. I am very careful in business and take care not to make any kind of offense,
so, the production manager from the factory, which produces our brand would in his
free time work on finding new markets for our products. Would it be considered as a
crime or bribery if I give to that person a 5% commission from selling in those
countries where he find a buyer for our products, from our business account to his
private? Please note that the factory that manufactures our products does not sell
our products to no one but only to us. They have no obligation to sell or finding
customers, but only production for us. Is it legally permitted in this case, give
that person a commission for helping to find new markets. In his free time he will
act as our sales agent. Is this allowed by law or would be considered as a legal
offense, bribery?

Kind regards
PhD
 
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Re: Bribery ?

Postby atticus » Thu May 07, 2015 3:50 pm

Provided that you have a correctly prepared contract which provides for a suitable remuneration/reward structure, I am sure that any risk of straying into the territory of bribery or other corrupt practices can be avoided.
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Re: Bribery ?

Postby PhD » Thu May 07, 2015 3:58 pm

Thank you very much. Is this commission should be booked as company expenses or it is better to pay from dividends?
PhD
 
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Re: Bribery ?

Postby atticus » Thu May 07, 2015 4:01 pm

Dividends can only be paid to shareholders.

This is an accountancy question. Discuss it with the company's accountants.
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Re: Bribery ?

Postby PhD » Thu May 07, 2015 4:02 pm

Thank you.
PhD
 
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