Legal Question in Business Law in Florida

partner

My partner wants to be a signer on the business checking account. When we first opened this person invested in the company $48,000 which the company pays him back $2,100.00per month as a loan. We had this partner's best friend as a partner also, until he stole money from the checking account. The current partner is still friends with him. I run the buisness each day, I take care of all the bills. The partner is in marketing. He travels once every 10 weeks and is out for 4days. He comes in the office 2 sometimes 3 days a week and helps in collection. I see no reason for him to sign checks! What do you think or know?


Asked on 5/29/01, 10:31 am

1 Answer from Attorneys
Stephen Verbit Stephen R. Verbit, P.A.

Re: partner

I do not believe there is any legal requirement for the company to make your partner a signatory on the company's bank accounts. The fact that he loaned money to the company does not give him a legal right to be a signatory on the company's bank accounts.

It seems to me the real issue is that you don't trust your partner. It sounds like you are concerned that he might spend the company's money inappropriately or steal it. If you are that concerned and you think your concerns are realistic, then you might want to question whether you want him involved in the business at all. On the other hand, if you do trust him and you think he has the best interests of the company at heart, then why not let him be a signer? Why is being a signer so important to him? What concern is driving him to make this request? Are you and your partner having disagreements as to how the company is being run or the direction in which the company is headed? Is there a way to address his concern without making him a signer? Weigh the risks and the potential benefits of him being a signer against the risks and potential benefits of refusing to make him a signer in spite of his request.

Good luck!

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Answered on 6/25/01, 10:43 pm


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