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Is your partner embezzling business funds?

On Behalf of | Nov 30, 2022 | Business And Corporate Law |

Business partners invest a great deal of time and resources to ensure that their ventures succeed. Unfortunately, it is not uncommon for some parties to take advantage of their partners and embezzle business funds. 

In a partnership arrangement, business decisions cannot be made by one party. Likewise, business assets and funds cannot be restricted to one party. If a partner utilizes business’ assets and funds without the knowledge or consent of the other partner, problems might arise. Generally, this would amount to embezzlement. But how can you tell if a partner is stealing from the business?

Here are two telltale signs that your business partner might be up to no good:

You are being locked out of crucial company information

This should be a huge red flag. If you are equal partners in the business, you need to have unrestricted access to the business information (including assets and finances). If your partner is restricting your access to business accounts or any sensitive information regarding the business, then this could be indicative that they are hiding something. 

Even if your partner believes you do not have the expertise to process and understand some information, they should never withhold it from you. 

Your questions and concerns are not getting clear answers

Chances are your partner has a skill set that you do not possess, which is meant to support the business. If your partner appears less interested in answering questions or concerns in areas they have expertise in, then you need to raise an alarm. Even if you are not involved in the day-to-day affairs of the business, it is important that you keep tabs on the business’ affairs. 

Getting into a business partnership with a dishonest person can be disheartening. Knowing your legal rights and obligations is key when getting into a partnership.