If a majority stockholder takes thousands of dollars in loans from his company for his own personal use, can that constitute criminal malfeasance and, if so, what is the punishment for a conviction?
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If a majority stockholder takes thousands of dollars in loans from his company for his own personal use, can that constitute criminal malfeasance and, if so, what is the punishment for a conviction?
Asked on November 4, 2012 under Business Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
From what you have written, if any stockholder of a corporation simply takes assets without approval form the other shareholders such taking could very well be theft, embezzlement or some other illegal act from both a criminal and civil aspect. From what you have written, I suggest that a business attorney be consulted about the situation for guidance as to what legal recourse is suggested.
A criminal conviction could result in a fine and/or jail.
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