Is it possible to restrict access to a bank account by my business partner?
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Is it possible to restrict access to a bank account by my business partner?
My business partner that likes to think of herself as a CEO keeps taking money from the business account even when we don’t have enough money. She has made us late to pay our employees and feels she is entitled to money first. I need to know what am I legally allowed to do as chef financial officer to stop her from accessing and paying herself through our business account?
Asked on July 10, 2019 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
If you are a majority partner, you can go the bank (bringing proof of you majority ownership) and close this account and open a new one which she is not on, or simply remove her access from this account: the majority owner controls the business (unless there is something in the operating agreement to the contrary).
But if she is the majority owner or you are 50-50 partners, you can't restrict or deny her access: 1) if she's the majority owner, she's in charge; or if you are equal owners, then any changes in operations, rights, etc. requires the agreement of both of you, since neither of you is solely in charge.
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