OR IS THAT WHAT BUSINESS IS?

Nope. Your summation is apparently correct based on what you stated above.

If he was to do the 'business side' of things, and he's hiring the jobs done by someone else, then HE should be paying them directly from HIS pocket...not the company's pockets. He's betting on you not knowing how things are supposed to be.

The business side of things can be a lot of things. I assume, perhaps incorrectly, that you two drew up a partnership agreement of some sort? If so, then each partner's responsibilities should have been spelled out in the agreement.

Any chance you could buy him out? If he can hire the work done that he's supposed to be doing, no reason you couldn't do likewise. I believe the monies the company paid on his behalf for work he was supposed to do becomes, in effect, a debt owed to the company by him. Depends upon how things were set up and done. This is why I'd say the following:

You really need a good legal advisor to straighten this mess out, IMHO...but find your own lawyer, don't use his. No man can serve two masters. I'm not a lawyer and this is not legal advice...just acquired knowledge on my part.

Sandi Bowman