Commingling of Assets in Tyco’s Case
The concept of commingling of assets in Tyco’s case refers to the adoption of the view that the assets of an employee are similar to the assets of the company. Commingling of assets occurred when Kozlowski considered the assets of Tyco as his own personal assets. The case shows that Kozlowski used Tyco’s funds to pay for his personal expenses. He used Tyco’s money to pay for his second wife’s birthday party. He also used Tyco’s money to cover the costs of properties he purchased. He used the company’s money to purchase household items and art pieces for his personal use.
Tyco’s case shows that commingling of assets made it easy for Kozlowski to use the company’s assets for personal needs. The company had programs that enabled Kozlowski to unethically use assets for personal needs. Kozlowski’s use of Tyco’s money was not just mere stealing of funds. It was also an exploitation of the weakness of the financial loopholes in the firm at the time of his leadership.