Legal Question in Business Law in Georgia

corporation and salaries

I own 50% of stock in an s corporation. I'm also the v.president and secretary, the other stockholder is president and treasurer. We have nothing in concrete about how we pay ourselves, it's always been 50/50. He's made transfers from our company account into his personal account and claims its for material. I've demanded a full and complete register from the bank. He put our secretary on part time and forwards our phone line to his house for his wife to answer. I have no way of monitoring this and I don't approve of it. He pays her 300 dollars a week tax free and she's neither an employee or an officer of this corporation. While inspecting the records, can I add the money he's paid her as part of his overall pay, considering it's going into one household and we've never voted on this decision? Is it illegal for him to transfer money from our company account to his personal account? Even if he claims it's for material purchases on contracts we have?


Asked on 2/27/08, 1:32 pm

2 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: corporation and salaries

You probably would not be able to properly label the money paid to the wife as money paid to him. However, you may very well have a good claim against your partner for violating his duty to you. You should have such policies in writing to avoid this type of confusion. But if your partner is not authorized to make such decisions, it could create liability to you on his part.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 2/28/08, 9:20 am
SHERRY RAGOLE RAGOLE & ASSOCIATES, LLC

Re: corporation and salaries

Your question requires that an attorney have access to corporate documents. Your best option is to employ an attorney to work with you.

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Answered on 2/27/08, 1:44 pm


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