Legal Question in Business Law in Texas

I own a lighting company with a partner who has been going to clients and having the checks for deposits made and having them made out to his girlfriend and cashing them at the clients bank that same day, I have now found out that the employees have not been paid and clients are calling for refunds, I own 51% and my partner owns 49%, I trusted him to run the company as I work fulltime as a real estate agent, everytime I have came into the office to check on things he always has an excuse to leave before talking to me. How do I go about handling this? The employees have to be paid its the holidays and I just don't know where to start?

I live in Texas.


Asked on 12/10/10, 11:07 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I have to ask a couple questions here. You say you have a company with a partner. Is your entity a corporation or a partnership? Either way, if what you say is true, you need to sever all ties with this person. Don't know if you have a buyout agreement in place or not. You will also need to consider suing him for what looks like embezzlement, which may also have a criminal aspect. Your best starting point is to consult with a good business or franchise attorney in your area to review everything and for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/15/10, 11:29 am


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