My husband and I and a third party own a small company. We have just found out that the third partner has been taking money out of company accounts for personal use, a great deal of money. We are all equal shareholders and all directors. Should I get the police involved? I dont think we can get rid of him unless we wind down the company which we dont want to do. Help me with some advice please!!
2007-02-06 19:34:58 · 19 answers · asked by Anonymous in Business & Finance ➔ Small Business
get some legal advice fast Most solicitors/lawyers offer a free half hour session. This should be enough to give you a good idea of what you can legally do. Perhaps this could be turned around to your advantage, to get rid of the thief. Stop there access to any more funds. I don't know where your based but if your in the south of England then Ellis and Jones are the best lawyers that i know. Most
2007-02-07 08:39:01 · answer #1 · answered by Ruby D 3 · 0⤊ 0⤋
If you want to deal with it without dissolving the partnership then you should set up the account in a way that he cannot get his hands on the money on his own. Surprised you haven't started out this way. Set up the account to require two or even all three signatures to cheques only for withdrawal of money. The same for cash point cards. Either have the pin number split so that two of you are there to take out cash or no cash point card for this account at all. The cheque signatures system is a usual way of keeping a control of company cash. You must also tell him of your concerns as the reason for changing the system. If he refuses then he has to go.
2007-02-07 03:54:54 · answer #2 · answered by ANF 7 · 0⤊ 0⤋
I would think you should probably hold a meeting with just the 3 of you first and discuss it, have all the facts and figures with you and try talking first there could of been a very valid reason this person took this money and they could of intended to put it back, you could come to some agreement, if while discussing this you cannot see this happening then i would tell the 3rd party you are going to get the police involved as this is stealing and then yes i would call the police. hopefully it wont come to that though.
2007-02-07 03:57:57 · answer #3 · answered by dubgirl26 3 · 0⤊ 0⤋
I suggest you get Solicitor to draw up papers showing the amount of money involved and ask him to sign this off as a 'Loan' with a payment schedule and commercial rate of interest.
Then if he fails to pay it back, you can seize his property / make him Bankrupt.
NB. It is normal in a Company or Partnership for Bank accounts to require 2 or more signatures. If you have such an arrangement and he has been forging signatures (or the Bank has let him draw without a second signature) you may have some claim against the bank.
2007-02-07 03:45:44 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
Talk to the 3rd party. Ask them why they have been doing it, give them a chance to put the money back. Discuss with them whether it was/is completely neccessary, and find out what it was spent on. Decide whether the 3rd party needed to use the money that way. Slow down, if not stop, their flow of money from the account. bring in the legalities if he/she persists to take money without your husband and/or yourself knowing. Bring in the police for theivery only if neccesary, keep it as clean as possible. :)
Hope i helped :)
Guy S
2007-02-07 03:47:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Conduct a formal meeting, and discuss his/her spending habits. I can only assume that this person does this because he holds the majority of shares in your company. Either way you will need to put it to him/her that it is not acceptable and effecting the running of your business.
That's all I can advise, If I had more information I could perhaps give more guidance.
As far as notifiying the police, they will simply not do anything about it.
You need to get a contract set up as to what percentage can be withdrawn from each party. That would probably be the best course of action.
:D
2007-02-07 03:47:38 · answer #6 · answered by Anonymous · 1⤊ 0⤋
drain the bank account into another account that only you and the other partner have a hand in, then confront him with it. Then take him to court for theft. I would get the police involved, or consult a lawyer for sure. Or do oldschool justice, beat the piss out of him, and ask him if it was worth stealing from you.
2007-02-07 03:39:24 · answer #7 · answered by Joe G 3 · 1⤊ 0⤋
Have a meeting with the three of you, ask him about the withdrawals, find out why he didn't tell you, ask for the money to be put back, failing that, arrange for that money to be part of his profit share for the year.
Get your accountant to do an audit for the past year, then have a meeting about the cash loss. Trace the withdrawals back to him.
Set up your accounts so that each withdrawal needs two signatures, so no one person can make withdrawals. At least then, if he's withdrawing the money by way of cheques, you can trace them back to him.
Good luck.
2007-02-07 03:50:23 · answer #8 · answered by RM 6 · 0⤊ 0⤋
First make sure that a charge of theft would actually stick. It may not if your colleague had legal access to the money in the account.
However I would first drain the account into another one to which he had no access, before confronting him. DSomeone else suggested this and it seems like a good idea.
2007-02-07 06:08:17 · answer #9 · answered by George 3 · 0⤊ 0⤋
Have you confronted this person directly?
Maybe you should contact an attorney and then confront him in a monitored setting...
I don't know exactly why but I get a feeling that an attorney would be of more use to you than the police right away... you need to play your cards delicately at this point... not give him a chance to retaliate before you have your walls built.
2007-02-07 03:38:23 · answer #10 · answered by rabble rouser 6 · 1⤊ 0⤋