Legal Question in Business Law in Arizona

One of my partners transferred money from our business checking account to her personal account and claims it's payment. For tax reason I find it illegal. Can she do that?


Asked on 7/25/10, 7:50 am

3 Answers from Attorneys

Donald Scher Donald T. Scher & Associates, P.C.

It would appear to be serious breach of your agreement to work together. Are you a proprietorship, partnership, an LLC or a corporation? Does she have the legal right to right checks against business accounts without limitation? Does it constitute embezzlement or theft? Does it breach a written agreement between you ? I do not understand why you think it is legal "for tax reason." You should retain counsel and establish the facts and your claims against her so that you will know what are your alternative courses of action available to you.

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Answered on 7/25/10, 3:10 pm
Kevin B. Murphy Franchise Foundations, APC

The other attorney is right on point here. She is also likely in breach of her fiduciary duties as a partner. Consult with an attorney in your area ASAP for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 7/26/10, 8:27 am
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Scher hit it on the head. If there is uncertainty as to whether or not she can do this, you do not have the correct documents in place to determine your rights and limitations within the business.

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Answered on 7/26/10, 7:14 pm


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