Can a President and VP use company funds for personal use?

UPDATED: Sep 30, 2022

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Can a President and VP use company funds for personal use?

I have a 2 bosses who constantly wants to pay their personal bills. The VP brings in his wife’s insurance for the company to pay, he buys a truck for her and has the company pay for family vacations. The company is always in the red and I can’t ask for a raise since there’s never enough money. Is this legal?

Asked on February 14, 2017 under Business Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It is legal as long as the actual owners of the company or board or directors (if the president and VP are not themselves the owners) do not forbid it; the president and VP have the authority to do this unless forbidden by the ownwrs or directors. There may be tax consequences for them and the company from using company money for personal expenses, but that does not stop them from doing it.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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