What to do about business partner who raided the corporate account and took all but $5?

I have a small corporation with 2 other business partners. Unexpectedly, 1 of the 3 shareholders abruptly quit the company and raided the corporate account. She claimed this was her fair share of the assets of the company, yet we were never even given an opportunity to figure anything out about assets. We obviously had no idea she was leaving the company a fact she hid until taking the money. Do I sue her or do I have the ability to turn her into the police? The amount is approximately $1500. Although her name was on the bank account, does she have the right to go into the account and unilaterally take all but $5.00 from the company and quit? We feel she literally stole from us! What should we do?

Asked on September 8, 2012 under Business Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

You have the ability/right to turn her into the police, and the business has the ability to sue her for theft/conversion.  Being a shareholder of a company does not give one the right to raid the company bank account and steal money for one's self.  The money belongs to the company.  The company should sue her to get that money back.


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