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Maverick, Advocate
Category: UK Bankruptcy Law
Satisfied Customers: 6422
Experience:  20 years proefessional experience
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I need some advice with a friend. I went into business with

Customer Question

Hi,I need some advice with a friend. I went into business with a friend in November last year. In a previous business I had a business partner steal a significant amount of money so since then I have been careful to watch bank accounts regularly. I have not noticed that my business partner has spent around £2,000 in business funds on gambling online.Is there anything I can do about this? I am obviously concerned that should the company ever go into liquidation or investigations by HMRC take place, I am going to somehow be implicated in misuse of company funds? How can I protect myself from this? In addition, has he specifically broken any laws and am I entitled to somehow claim this portion of money back either on behalf of the company or personally as a 50% shareholder?Thanks in advance.
Submitted: 1 year ago.
Category: UK Bankruptcy Law
Expert:  Maverick replied 1 year ago.

Welcome! My name is***** give me a few minutes to analyze and/or research your inquiry and I will be back.

Expert:  Maverick replied 1 year ago.

Normally, the company would hire a lawyer and sue this officer for breach of fiduciary duty and or conversion/embezzlement of company funds. In your case you have what is known as a "deadlock" situation because it appears that each of you owns 50%. So, even before getting started, you would have a dispute as to whether the company should hire an attorney for this purpose.

You can either agree to buy out his shares or he can buy out yours. Or, one or more of the parties may alternatively apply to the court for the company to be wound up on just and equitable grounds.

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