When you started your business, you likely hoped that you and your business partner would see smooth sailing for the most part. You undoubtedly expected squabbles now and then simply because any type of relationship has that possibility, but you may not have expected to face serious problems with your business partner that put your company at risk.
Unfortunately, not all partnerships work out as individuals intend in the beginning, and in some cases, the problems can stem from a partner stealing from company accounts. This idea may have seemed outrageous if you had thought of it when you first started your company, but now, you understand all too well how real a problem it is.
Do you suspect your partner of stealing from the business?
You undoubtedly do not want to accuse your business partner of a serious act like embezzlement without having solid evidence that such actions have occurred. You may look for evidence in your company’s financial books and statements, receipts, records of transactions, and even your partnership agreement. Your agreement could act as evidence because it, hopefully, contains information about how and when each partner could use company funds.
What can you do?
If you have a strong belief that your partner has unjustly taken money from company accounts for personal use, business transactions outside your company or for other unauthorized reasons, you may want to explore your legal actions. Because this type of issue could present civil and criminal implications, you could take any of the following actions:
- Suing for breach of fiduciary duty
- Claiming civil or criminal fraud
- Seeking charges for embezzlement
- Dissolving your business partnership
The idea of taking any of these actions may seem difficult because, after all, you likely formed strong bonds with your business partner, and his or her betrayal of your trust and of the company’s well-being may come as a hard blow. Still, you likely understand the importance of protecting your company, and taking action may be the best option.
If you believe that your business partner has stolen from your company, you may want to present your concerns to a New Jersey attorney. Obtaining legal counsel could help you better understand your options for handling this type of difficulty and your options for dissolving the partnership if that action seems appropriate for your specific circumstances.