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Re: Partner stealing

rockbar — Mon, 14 Jan 2008 21:30:08 GMT

Thank yoy. Anything helps

Re: Partner stealing

PULLP.NY — Mon, 14 Jan 2008 17:57:20 GMT

I am an attorney, and there are a number of factors that would factor into these issues. Where are you located? (Jurisdictional laws may differ). Where was the company incorporated? What do the Articles of Incorporation and Bylaws say?

I cannot offer legal advice in a forum like this, but these are some of the key questions to focus on. If you want to discuss this further, feel free to contact me. Best of luck!

Re: Partner stealing

rockbar — Sat, 12 Jan 2008 20:33:03 GMT

To answer a few questions at once:

We are a privately held corporation with 3 majority shareholders and 5 very minority shareholders. There is also no questions as to whether or not he has been stealing. I have bank records that show the company check card has been used to pay for everything from concessions at a ballpark to Christmas presents. This individual has been my best friend for 16 years so I would not accuse him of anything without having all the proof I need. It has also come to my attention that his reputation in the community is very lacking. He has been accused of sleeping with a woman and emptying her bank account. Now I DO NOT know if this is true or not, but I do know that prominent members of our community believe this to be true and have chosen not to frequent our establishment because of his involment with us. And, I also know that is not the first and only accusation of theft against him.

Re: Partner stealing

Greg Melton — Sat, 12 Jan 2008 19:09:14 GMT

I would have to begin by asking "Is he stealing?" You may need to define stealing. I am not trying to give the guy a way out, but sometimes there are reasons or even more importantly suspicions that may not be true. Nothing would be worse to a relationship and a business than equal partners accusing one another of things that are simply misunderstood or untrue.

As always, I would consult with an attorney. Perhaps on your own dollar - remember it may be construed as stealing from the company if this is not really a company issue. See how that works.

The bottom line is communication. As they say, communication is the root of all evil: lack of; miscommunication; poor... Simply talk to person. You may be able to find out what is going on with the money without causing a bigger problem. If he is indeed stealing (remember to define stealing), follow the advice of those above me. But remember, it may be something else.

If you are just looking for a way to "remove" a member of the company, I would have to argue that you should explore other avenues to make that happen.

Greg Melton
Founder and CEO
Branded Concepts

Re: Partner stealing

CorpCons08 — Sat, 12 Jan 2008 18:34:30 GMT

Good point on the privately held and publically held business...
Which is it? CC08

Re: Partner stealing

DomainDiva — Sat, 12 Jan 2008 13:33:05 GMT

Recourse? For Stealing? NO. Just make sure you have all the proof. I dumped a board member because he signed my name to an email on an outside project. Recourse? Oh no. Proof.

What a scoundrel.

Re: Partner stealing

Lighthouse24 — Sat, 12 Jan 2008 06:12:25 GMT

P.S.. I assume that you're privately-held -- you'd obviously have even more concerns and procedural issues if your company were publically traded.

Re: Partner stealing

Lighthouse24 — Sat, 12 Jan 2008 06:09:10 GMT

My suggestion is to consult an attorney. Yes, you can cut him off from the accounts fairly easily, as already advised. In practice, however, it can be difficult to actually remove a director by a resolution. In many states, corporate law gives every director on the board the right to receive special notice of any resolution to remove him. The company must provide a copy of the proposal to the director, who is usually entitled to be heard by the meeting. The director may require the company to circulate representations prior to the hearing. And unless he is actually convicted of a crime, he may be entitled to compensation for removal, espcially if any of these steps was skipped. An attorney can quickly (i.e., affordably) advise you on how to proceed. Best wishes.

Re: Partner stealing

CorpCons08 — Sat, 12 Jan 2008 06:06:08 GMT

I've worked for three commercial banks in a past life.
I'm positive. CC08

Re: Partner stealing

rockbar — Sat, 12 Jan 2008 05:42:31 GMT

Thank you for the info. Are you sure the minutes from the meeting will be enough for the bank to take him off all our bank accounts?