I think my business partner is using the partnership accounts wrongly, what should I do?

I think my business partner is using the partnership accounts wrongly, what should I do?

I think my business partner is using the partnership accounts wrongly, what should I do?

Answer: 

What each partner is entitled to do in a partnership is defined by the partnership agreement, or the conduct of the parties established over a period of time, or a combination of both.

If you have discovered that your partner is in breach of their duties under your agreement you need to act swiftly to ensure that irrecoverable damage is not caused to the business. 

If, for instance, a partner is taking money from the partnership account for their own ends, as well as depriving you of the potential benefit of that money, your partner may also be failing to pay debts to your suppliers, which in turn could leave you personally liable for the debts of the business.

In these circumstances it is important to get advice quickly on your options, hopefully before any serious damage is done to the business.

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