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    14 Replies Latest reply on Jan 14, 2008 4:30 PM by rockbar

    Partner stealing

    rockbar Newbie
      I have a partner who is stealing money out of our bank account. He has signed our Corporate Bylaws which say that any director on the Board of our corporation can be voted off by a majority shareholder vote. Once he is voted off the Board of Directors the remaining Board members can then vote him out as President. My question is two parts, first, does he have any recourse, other than a shareholder vote of course, to get back on the Board? Second, once he is voted silent can he be removed from our company bank accounts?
        • Re: Partner stealing
          LUCKIEST Guide
          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
          • Re: Partner stealing
            LUCKIEST Guide
            I had an employee who wrote himself an extra check for 6 weeks until we did a bank rec.
            He is now in Jail. That is stealing. LUCKIEST
              • Re: Partner stealing
                rockbar Newbie
                Thanks for the helpful info. I am not sure I can get him for stealing because he is an equal partner with access to the accounts. But, I know i can get him voted off, and I am looking for an attorney to consult with as we speak. Again, thank you for the info.
              • Re: Partner stealing
                CorpCons08 Ranger
                You may have a lawsuit against the board member for the money the company is out. (consult a lawyer)
                As far as removing him from the bank accounts, bring in minutes of the meeting showing that he was removed.
                The banks will complete new resolutions and signature cards to remove him same day.

                Regards,

                CC08
                • Re: Partner stealing
                  Lighthouse24 Ranger

                  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
                    Lighthouse24 Ranger
                    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
                      DomainDiva Ranger
                      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
                        Greg Melton Newbie
                        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
                            rockbar Newbie
                            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.