- Jurisdiction
- Missouri
The founder of a new Missouri Corp that has issued and sold stock has been using company funds for personal uses (i.e gas, vehicle expenses, meals, groceries, personal utilities, credit card payments, Child support, Netflix, etc). The company was just started last year. Due to getting started and the quick take off of the company, I just started working on the company books and discovered this.
My question is two fold.
1) What are the ramifications to the founder?
2) What is my liability after discovering this information? When the prospect presented itself, my husband and I invested as "partners" (although we were not smart enough to have a partnership agreement drawn up at the time, The owner is a friend although I am a little hesitant to call him that at this point!) The problem goes deeper than just the surface since other issues have also surfaced (incomplete bylaws, lack of directors, possible misappropriation of funds?)
I am not sure what measures I need to take to protect myself and also protect the shareholders as well as the company itself.
My question is two fold.
1) What are the ramifications to the founder?
2) What is my liability after discovering this information? When the prospect presented itself, my husband and I invested as "partners" (although we were not smart enough to have a partnership agreement drawn up at the time, The owner is a friend although I am a little hesitant to call him that at this point!) The problem goes deeper than just the surface since other issues have also surfaced (incomplete bylaws, lack of directors, possible misappropriation of funds?)
I am not sure what measures I need to take to protect myself and also protect the shareholders as well as the company itself.