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How might one perform financial actions which companies as entities aren't allowed to perform, but for which they can be represented by a director or employee? For example, I understand that venture capital investors do not have the name of their firm on the term sheet, it's the name of the particular partner leading that investment for the firm that is put on the term sheet.

Can you really just move cash between company and personal accounts at will? What are the legal ramifications of this?

[edit] Jurisdiction: the US.

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  • Which jurisdiction are you asking about?
    – Vicky
    Commented May 23, 2021 at 15:05
  • @Vicky the US. Nothingness to fill up space. You need 15 characters to comment on StackExchange. Commented May 23, 2021 at 15:32

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In a general partnership, any partner can act on behalf of the partnership. Even if one of the general partners is the party to an agreement, it doesn't mean that personal accounts have become involved.

This excerpt from a sample partnership agreement gives a sense for how the partners agree to empower and to restrict each other:

  1. Title to Partnership Property. If for purposes of confidentiality, title to Partnership property is taken in the name of a nominee or of any individual Partner, the assets shall be considered to be owned by the Partnership and all beneficial interests shall accrue to the Partners in the percentages set forth in this Agreement.
  2. Leases. All leases of Partnership assets shall be in writing and on forms approved by all the Partners.

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