What happens to a company when business partner dies and the company is left in finacial ruin due to partners embezzlement. Partner's insurance policy and widows claim on company.
State/Country relating to question: United Kingdom
Technically speaking, the Operating Agreement governs any kind of transfer, including a death of a partner. Typically, unless there is a survivorship clause, the heirs do get the value (worth) of the other partner's share.If he was embezzling, however, his estate can be sued on behalf of the company and any funds that he embezzled can be reduced and removed from the share the other partner may owe to the estate.Sincerely,Dimitry Alexander Kaplun, Esq.
If you don't mind I am a writer (hope you don't hold this against me) My business partner (the surviving one) is actually the embezzler and he set up business partner. The wife is destitute because of surviving partners defrauding of personal accounts too. Can business partner force wife as such to sell him husband share for fraction of worth without her knowing, until much later i.e 1/2 years?I'm sorry if you think I'm wasting your time.
My apologies on the delay. I do not mind; I was a struggling writer myself so I can quite understand so please do not hold that against me.And no, you are not wasting your time. Yes, he can true to use duress and economic factors to force the wife to sell out at less than market value. It may be held unconscionable (if the wife ever attempts to get redress through the courts), and upon finding out about the embezzlement, the wife as the survivor of the share can bring criminal charges and a suit for damages as well.Sincerely,Dimitry Alexander Kaplun, Esq.
Run my own successful business/contract law practice
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