What is the name of your state (only U.S. law)?
I am one of three partners in an Ohio based LLC. We are a small publishing company. One partner 'loaned' the company money to print this partner/author's book. The amount loaned to the company did not cover all of the expenses for producing/printing the book. Unfortunately there is not a written agreement covering the money that was 'loaned' to the company, however a Note Payable was established. It was verbally understood that the Note Payable to this individual was to be repaid through the proceeds from the sale of the books.
The partner/author has physical control of all the inventory of said book. It was verbally agreed that the company would receive 50% of profits which means total revenue less expenses.
Since this individual loaned the company the money the books are the property of the company as there is an obligation on the books to pay the partner/author back . It is believed that the partner/author is now selling books and keeping all of the revenue and not running the money through the company. By doing so the inventory is overstated, no revenue has been received and the Note Payable is still on the books. Would this be considered theft?
I am one of three partners in an Ohio based LLC. We are a small publishing company. One partner 'loaned' the company money to print this partner/author's book. The amount loaned to the company did not cover all of the expenses for producing/printing the book. Unfortunately there is not a written agreement covering the money that was 'loaned' to the company, however a Note Payable was established. It was verbally understood that the Note Payable to this individual was to be repaid through the proceeds from the sale of the books.
The partner/author has physical control of all the inventory of said book. It was verbally agreed that the company would receive 50% of profits which means total revenue less expenses.
Since this individual loaned the company the money the books are the property of the company as there is an obligation on the books to pay the partner/author back . It is believed that the partner/author is now selling books and keeping all of the revenue and not running the money through the company. By doing so the inventory is overstated, no revenue has been received and the Note Payable is still on the books. Would this be considered theft?