What to do about business partner who raided the corporate account and took all but $5?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 11 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.
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 AttorneyPages.com 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.