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  • Is this embezzlement? Minority shareholder 30/70

    updated 2 years, 4 months ago 0 Member · 1 Post
  • Charles

    Member
    September 12, 2019 at 7:31 pm

    Mechanic shop, very profitable. The majority shareholder will take ‘withdrawals’ from the business savings account, cash, up to 6k and give it to himself for vacation expenses. He also continues to pay himself a salary for the time off (reasonable). Because of this that same month there will be ‘no profits’ or dividends to split 70/30. He uses the business credit card for personal purchases (Dyson vacuum, full tanks of gas without tracking myself, smaller luxury items). There are other gray areas, like having the business purchase him 4-6 red bulls a day. He will occasionally give one to vendors, thus making it into our coffee budget for the show room. We bought so much red bull for his caffiene addiction they gave us one of those refrigerators shaped like a can for free. I’m a silent shareholder. He argues it’s his right as a managing member. I argue I can put him in jail because this is stealing. Who’s right? – by hq overview tinuousT – –

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