I own 50% of a company and having some issues with my partner, he took a check and is holding onto it, can he legally do this? without depositing into the company account?
2 Answers from Attorneys
To paraphrase H.L. Mencken, — For every question, there is an answer that is simple, neat and wrong. --- That being said, business owners have a duty to act in the best interest of the company. So, clearly, a business owner is not permitted to misappropriate money which belongs to the company. I routinely advise and represent business owners with respect to such matters. I invite you to call me to discuss the matter in greater detail.
Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.
Please visit my website! www.bgartenberg.com or call me 973-921-0600 if you’d like to learn more about me or my practice. Thank you.
First, you did not say whether the company is a Corporation, Partnership, or LLC. Your rights will be determined by the written agreement drafted by the lawyer when you and your partner started the business. if you set it up without legal counsel, most likely it was either incomplete or does not do what you want.
Under some circumstances, your partner may be able to hold business assets in a personal name. The best thing to do now is to hire a good tax and business lawyer to review the documents and to handle this matter.
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