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My COO has been taking client checks that come in to pay outstanding

 
 
 

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My COO has been taking client checks that come in to pay outstanding invoices and depositing them in order to pay himself back for advancing the company monies. He is a principle investor and to my knowledge completed his contract to become a partner.

I would like to know if this is legal .

Submitted: 1009 days and 4 hours ago.
Category: Legal
Status: CLOSED
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Accepted Answer

Thank you for contacting our JA team for guidance.

 

The COO should not be depositing the checks into his own account or jeopardizing the well-being of the company. However, if he advanced the company money, the company does have a legal obligation to pay. But he needs to be paid along with other creditors, not siphoning money to the detriment of other creditors.

 

Please let me know if you need additional information.


Best regards XXXXX XXXXX

TG

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Expert: Tina
Pos. Feedback: 98.7 %
Accepts: 6667
Answered: 8/18/2009

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JD, BBA Over 20 years legal and business experience.

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