Legal Question in Business Law in Texas

Possible embezzlement

Our business partner passed away last year and during a recent audit we found out he used company funds in excess of $85k for personal expenses and to pay for his other companies business expenses. Our company is a S corp with each partner owning 50% of the shares. His wife is now the owner of his shares and has admitted thru her attorney she did the accounting for the company for the last 10 years. She is insisting that she continue to work for the company doing the accounting and wants to be appointed an officer and director of the corporation instead of a shareholder. What recourse do we have? Can we press charges against her even tho she was not a legally a shareholder or officer in the company at the time the checks were being written?


Asked on 5/14/05, 7:42 am

1 Answer from Attorneys

Re: Possible embezzlement

You can sue her if you can prove that she assisted in the embezzlement. You can sue his estate for recompense of the $85k. There are other avenues to remove her from the company. If you think she may be embezzling now, then you need to act quickly, in order to stop it. Get a lawyer as soon as possible.

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Answered on 5/14/05, 9:10 am


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