Ex-director has taken money from company account

[Kelli]

I am hoping someone can help with this one.

The director and company secretary of my partner's company has written and cashed a cheque to another of his company's for over £4k, then resigned as director and co sec. He has, however, remained a 50% shareholder of the business.

We have not had/ordered any good from his company and have received no invoice, despiting asking for one to confirm what the payment is for.

He has now been removed from the bank mandates but obviously we want the company money back. Any ideas where we stand with this and what we can do next?

[i.m.]

It's a clear breach of fiduciary duty and he is personally liable as a trustee of the company's funds. A short, sharp letter could do the trick. Get in touch if you want help in writing it.

Cheers

BR

[obscure]

Pretty sure that would constitute embezzlement. I suggest that you talk to your local police. They will be able to confirm this.

[Kelli]

Thank you for your help with this guys. It has confirmed what we already suspected. Just need to wait for him to sign over his shareholding now, and then we can follow up with your suggestions.