Paying yourself back the money you invested in your company

[mbnewman]

What is the name of your state? Michigan
I recently bought 33% of an S corporation with an investment of $100+K. The owner of the balance of stock bought the company for $600K. I'm a silent partner and he actually works the business and receives a payroll check along with running his car and a few other things thru the business. He also runs many other personal things thru the business stating he can do this even tho I'm a third owner because he can take as much as he wants out of the company until the amount reaches the $600K he originally invensted. Is he right?

 

[JETX]

What does your partnership agreement say about compensation and withdrawals from company funds??

 

[mbnewman]

I'm not sure exactly what the agreement states, I'll definitely take a look. So you're saying as long as the agreement allows this, it is perfectly legal?? Thanks!!