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My Business Partner Has Been Paying Himself An Extra Salary(over $19,000) From Our Shared Business Account For Eight Months. Location: California.

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We started our company three years ago, equal 50/50 partners, both draw the same agreed salary. Last week I was going through our accounts to prep for a meeting with our accountant and noticed recurring transfers I didn't recognize. Traced them back and they've been going to my partner's personal account every month for eight months. Total is just over $19,000.

When I confronted him he didn't deny it. He said he'd been doing more work lately and felt he deserved additional compensation and that he planned to bring it up formally. He has not brought it up formally. For eight months.

We have a partnership agreement that requires both partners to approve any changes to compensation. He did not get my approval. He did not tell me. He just started paying himself extra and apparently assumed either I wouldn't notice or it would work itself out.

I have screenshots of all the transfers, our original partnership agreement with the compensation clause, and our text conversation where he admitted what he did.

My questions are: does this constitute fraud or embezzlement under California law given that he had signing authority on the account? What's my fastest path to recovering the $19,000? And what happens to the partnership now - can I dissolve it unilaterally or do I need his agreement?

TL;DR - business partner secretly paid himself $19k in extra salary over 8 months without consent, admitted it when confronted. Have documentation and signed partnership agreement. What are my legal options in California? Location: California

submitted by /u/foxgrain_2
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