Are you a shareholder who has given away the right to sign checks? That’s going to be a problem if your relationship with your business partner sours.
Many clients complain to me that their business partner is taking too much money out of the company, or is making poor decisions with the company’s finances. Unfortunately, many of them permitted their partner to be the only person with signature authority.
If you find yourself in this situation, it may be difficult to have yourself added as a signer without your partner’s consent. So, what can you do to stop the misuse of funds? In many cases, you will need counsel to file an injunction to stop your partner from engaging in unnecessary, wasteful transactions. The standard for receiving an injunction is high, but it can be accomplished.
And if you are just starting out, think twice before giving away the right to sign checks.
If you have any questions or concerns about your family-owned business, shareholder disputes, or other litigation-related matter, contact me at firstname.lastname@example.org.