Timeline for Boss spends the company's money and endangers employees' paychecks
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| May 31, 2017 at 17:53 | comment | added | usr-local-ΕΨΗΕΛΩΝ | Another example of using company money for personal use is to pay invoices for "business dinners" and "business travels/vacations" where attendants are boss and his family. Useful to escape taxes, perfectly illegal | |
| May 31, 2017 at 17:51 | comment | added | usr-local-ΕΨΗΕΛΩΝ | @gnasher not necessarily. I will provide you example. Boss buys car company but uses it for personal vacation, speeding. Police notifies the car owner (company) and demands fine. Boss authorizes payment with company money as the driver identity was unknown. Perfectly legal in my country, so next time you see a luxury car driving far overspeed on your left think about me :) | |
| Jan 20, 2016 at 22:07 | comment | added | gnasher729 | In the UK, the company and the single shareholder are separate entities. The single shareholder owns the company, but can't just access the company's money. It wouldn't make sense to have the protection of a limited liability company while being able to extract unlimited amounts of money. | |
| Jan 20, 2016 at 9:53 | comment | added | Philipp | @gnasher Does this apply to every company form you can have in the UK? In most countries I am familiar with this applies to various forms of limited-liability companies, but usually not to sole proprietorships where the companies money is the owners money and they can do with it however they please. | |
| Jan 20, 2016 at 9:50 | comment | added | Kilisi | @gnasher729 Are you saying it doesn't happen in the UK? Sole owners never put their hand in the till without documenting it and entering it into their accounting package? | |
| Jan 20, 2016 at 9:07 | comment | added | gnasher729 | Actually, in the UK you are only allowed to touch your own company's money either if the company gives you a loan (which is then an asset to the company, available to creditors in the case of bankruptcy) or as a dividend payment, and paying an amount of dividends that leave the company unable to pay its bills is illegal and can be criminal. | |
| Jan 20, 2016 at 7:36 | history | answered | Kilisi | CC BY-SA 3.0 |