Theft? What should i do? (Business banking account)

Felix Da Housecat

Felix Da Housecat

Felix Da Housecat

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Looking for some advice on the business account for the company I co-own.

I've found out that money which I have earnt and was in the business account has been spent on various things by my business partner. There should have been over £300 of my money in the account but as of 15th september ther was a balance of about £43.

It would appear that the account has been used for his day to day buying of goods, which I did not know about, and not for the sole purpose of the banking for the company.

Any advice on what to do would be great.

Can anyone tell me if this matter comes under the act of theft?
 
I guess it really depends on the terms of your partnership agreement.

Why would you go into business with someone you don't trust? Have you spoken to him about this?
 
WotDa said:
Don't think so, you gave him the account details afterall.
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I didn't give him any details, we both have bank cards as given by the bank, he has the paying in book, and company cheque book.

As it's a business account he is allowed to have access to his half of the funds but does he have rights to spend my half of any money earnt?
 
You both have equal right to take all of the money unless a contract says otherwise.

(IANAL etc etc)

A business partnership is like a marriage. You need to trust that person implicitly otherwise it just ain't going to work.
 
It would all depend on the partnership agreement you came up with when you started the business. Can't remember company law exactly though. Best bet, if you are extremely concerned is to talk to a lawyer. Also, if you do not have a formal agreement, get one written up as soon as possible.
 
Adz said:
I guess it really depends on the terms of your partnership agreement.

Why would you go into business with someone you don't trust? Have you spoken to him about this?
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I've known him for many years, and did trust him before i found out about his spending. I dont get a monthly statement from the bank to my address so i was unable to see what was going on.

I'd been asking for a ballance on the account as i'd only made one withdrawl on the account in 3 months and was in need of some money to pay rent etc etc, and having been fobbed off with a number of excuses.

I decided to register for online banking and last night i checked for the first time and there is a lot less money than there should be.
 
well the first thing it to ask him. your real problem is can you sustain a partnership with someone you can't trust?
 
Talk to him about it and ask for receipts! You will need them for the accounts to be done anyway. Then go through the receipts and for the stuff that isnt for the business, you ask to be repayed.
 
jdickerson said:
I'm sure someone said: "A business partnership is like a marriage"
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Very true, but as the account was only there to pay in cheques given to us for work we had done, so we decided that any payments are devided by 2 then we each withdraw what we are due.

He can spend his money on what he wants, (once he withdraws it) but he shouldn't be spending more than his share, and by using the card and cheques to buy things for himself it would seem he has lost track of whats his money and whats mine.

He's made purchases in two of the large supermarkets, petrol stations, blacks the outdoor shop, O2, ebay, and he even paid for his holiday using the company account.

Where as i've only used the account 3 times, 1 for a cash withdrawl (my wages) and two to buy replacement stock for the business.
 
Well you should be able to get statements from the existance of the account, that way you can calulate exactly how much has been paid in and then figure out how much is your and how much is his. If he has taken too much, then ask him to repay the difference to you. Problem solved.
 
leaskovski said:
Well you should be able to get statements from the existance of the account, that way you can calulate exactly how much has been paid in and then figure out how much is your and how much is his. If he has taken too much, then ask him to repay the difference to you. Problem solved.
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I have printed out all the statements online so once we sit down and talk this through and i find out what money is due to me.
 
Explain to him what you have discovered and ask for the company's money back.
Change the account so that you both have to sign the cheques for any withdrawal.

If he doesnt have the funds, change the account as above and when you agree to take any profits, he takes less until the debt is repaid.

Failing that, buy him out of the partnership, less what he's already taken and run it yourself (recommended).
 
Felix LaPoubelle said:
I'd been asking for a ballance on the account as i'd only made one withdrawl on the account in 3 months and was in need of some money to pay rent etc etc, and having been fobbed off with a number of excuses.
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While what your partner has done isn't good at all, the fact that you have withdrawn money from the business account isn't going to help your case. The Bussiness account should be purely for the business, and not for personal spending, no matter how small an ammount.
 
messiah khan said:
While what your partner has done isn't good at all, the fact that you have withdrawn money from the business account isn't going to help your case. The Bussiness account should be purely for the business, and not for personal spending, no matter how small an ammount.
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No the money is ours, we are self employed and the money is what we were paid for from our customers.

Instead of people paying us with personal cheques we get them to pay the company via our company account, which we then split two ways.
 
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