Generally, I would say that you own the vehicles, not the corporation. Neither your partner nor the corp would be entitled to any proceeds if they sold.
The corp owns the bank account and if it were liquidated, the proceeds after payment of creditors would go to the shareholders.
However, before we get this finally answered, let me ask a few questions.
The vehicles are in your name. Is there still a bank note on the vehicles or do you own them outright? If there is a note, who pays it-- you or the corp? The vehicles are paid off. However, they were paid off by the corp. Payments came out of corp bank account.
Does the corporation pay you anything to you for using the vehicles? Or do you just let it use them? I just let corp use them.
When the rental income comes into the corporation, is it just used for corp expenses and then paid out to you and him as salary or equity distribution? That's correct. When there was payments on said vehicles, corp made payments. Then there would be quarterly distributions.
The reason I'm asking is that there clearly are some unwritten understandings between you and the corp such as: (1) you let the corp use the vehicles (to rent to customers) without charge; (2) I would say you have a claim against the corp for the use of the vehicles; however, maybe that is implicitly your equity contribution; (3) if the corp is paying the note on the vehicles, it would theoretically have a claim against you to the extent the paydown of the note benefits you personally; (4) do Items 2 & 3 wash? Basically, the answer is yes.
Also, is the company 50/50 or something else? Do you have a shareholders agreement (an agreement regarding what happens if one of you gets a divorce, files bankruptcy or just simply wants a division of the company -- i.e. a buyout provision) in place? The corp is 50/50. The buyout agreement is 50/50 of what the corp owns. Which is basically a bank acct. Correct?
Reason for the question is my partner has embezzled funds from the corp. Aside from pressing charges, which I would rather not do, just looking for options to protect myself in a lawful manner. Suggestions?