ForumsStarting a Business

DO YOU HAVE A LAWYER?? Can you prove your partner is stealing money out of your bank account??
AND HE IS STILL YOUR PARTNER?? Vote him off the Board of Directors, take his keys, throw his out and
Call the police and have him arrested.
LUCKIEST

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?

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.

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.

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

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!