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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.


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