I have found a business partner stealing

Asked almost 3 years ago - Alpharetta, GA

i have a unwritten business agreement with each partner owning 33 percent of the company. I found one of my business partners was writing a payroll check, from our check book, dated from July of this year, but when I checked the check number, the check was written in November. This same business partener has used the company card to pay for hotels on his trips. He has bought groceries, his cell phone bills. He has even spent money to contractors for upgrades of construction we did not agree to- $7000. He has kept equipment from a contractor that the business used a year ago (and paid off) and we just got a bill for $11000. One night when I was manager on duty and he took a cash box from a bartender and ran behind closed doors to count it. I have confronted him about his mispending.

Attorney answers (4)

  1. John Warwick Caldwell

    Contributor Level 13


    Lawyers agree

    Answered . The BIG problem here is that you have no written agreement in place with your 'partners."

    You have no choice but to hire counsel ... skilled business attorney ... to advise you and the company. I am comfortable thinking that your interest is in line with that of the company ... at least under the facts you state. Seems as though one 'partner' is stealing.

    Regrettably, without a written document, you are going to have very tough sledding on this, friend. You surely cannot do it alone.

    All comments on this site are 'in the cloud' and do not form an attorney-client relationship of any kind. Just... more
  2. Paula Jeanette Mcgill

    Contributor Level 17


    Lawyers agree

    Answered . Is it a partnership or a limited liability company? Do you have a partnership agreement/articles of organization? What does the other "partner" stated about the misconduct? What does the articles state about removing and suing a partner?

    You should discuss the matter with the other partner, take the articles or other organization documents to a corporate attorney to determine what to do next.

    If you don't already have an attorney in mind, I am available to discuss the matter with you in my Roswell office.

    300 Colonial Center Parkway
    Suite 100
    Roswell, GA 30076

  3. Kevin M. Veler

    Contributor Level 15


    Lawyers agree

    Answered . You have not asked a question. You have specific issues which need to be addressed specifically with an attorney and not a general information website. It does appear that you do need the assistance of a good business legal advisor and to terminate your involvement with your troublesome partner if possible, get your business arrangement with your remaining co-owners in writing and establish some good business practices regarding control of accounts, spending and reimbursements. There may be some statutory remedies but I suspect that some practical steps would be most cost effective. If I can be of any assistance, please contact me. Good luck.

    Disclosure: This answer and any information contained in this answer is not intended to be treated as legal... more
  4. Matthew Abts

    Contributor Level 7


    Lawyers agree

    Answered . Youve already got your gold-plated answer: See an attorney. But just so you aren't needlessly obsessing in the meanwhile, you should know that just because you don't have a written agreement doesn't mean you're entirely in irons.

    Obviously it would be better (far, far better) if you had some sort of written operating agreement. On your facts, we don't even know if you've filed a company!

    The good news is that most states have default laws that kick in at times like this. If you never filed for a company and never signed anything, you probably have a default partnership under state law.

    So long as you've got evidence on the wrong-doings of the partner, I think a good Georgia attorney will see you clear on top of this thing.

    So don't fret too much. Just go get yourself a good business litigator (trial attorney) today.

    You are not my client and this answer is not meant as legal advice -- it is for general knowledge only. If you... more

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