Question: Can I sue partner for misappropriation?
( Back )
Answer #1:
You don’t say if your company is a corporation (or LLC) or a partnership, nor do you say why you think your partner is spending the company’s money for his personal benefit; but let’s say he is.You should confront your partner and ask him if he’s misusing company funds. If his response is anything other than totally satisfactory to you, tell him you want to have an independent accountant examine the company’s books and records. If you don’t have copies of the company’s tax returns, tell him you want them.
If your conversation is less than totally productive, or if he refuses to allow your accountant to examine the company’s books, tell him you will have no choice but to file a civil suit against him and report him to the IRS for tax evasion. That should rattle his cage. You might also want to indicate that (whether it’s true or not) you have a lawyer who is prepared to go to court and get a restraining order that will bar your partner from appropriating company funds.
You don’t want to wreck the company if you can avoid it, but if your partner is stealing company funds, you need to find out – the sooner, the better.
Good luck.
Answer #2:
of course you can sue. You can sue pretty much for any reason. But talk to a lawyer and find of the strength of your case.** Powered by Yahoo Answers