What to do about possibly misappropriated funds taken by a former business partner?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about possibly misappropriated funds taken by a former business partner?
One of my business partners walked out of our LLC. We are all 33.3% owners. He left and took 1/3 of the cash we had on hand, then proceeded to withdraw $10,000 from our joint bank account to “protect his investment”. What should we do? Was there a crime committed?
Asked on September 2, 2012 under Business Law, Maryland
Answers:
Paula McGill / Paula J. McGill, Attorney at Law
Answered 11 years ago | Contributor
You can try to file a complaint with the police and also sue him in civil court in the name of the LLC. First, have an attorney review the articles and bylaws of the LLC. Second, based on the information obtained from those documents, sue him for return of the money. Third, the remaining two owners may be able to remove the wayward owner from the company legally.
Also licensed in Maryland.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.