In a company that is “a sort of partnership” the shareholders are required to have increased trust between them

In a company held equally by two shareholders, one demanded compensation from the other shareholder claiming that the other was stole company's money.
The court rejected the claim in the absence of proof of the existence of the embezzlement even though it determined that the shareholder can sue the other shareholder and his right is separate from the right of the company. In general, shareholders are separate from the company and therefore in case of embezzlement by a shareholder, only the company can file a claim against him. However, when the Company has a small number of shareholders in equal holdings, and where all the shareholders serving also as directors and having signatory rights, and when the share transfer are limited by the Company's articles of association, the Court may recognize the Company as a "partnership." In a company that is recognize as partnership, there are increased mutual trusts between the shareholders that require complete sincerity, similar to partners in a partnership. In such case, a shareholder is also entitled to demand compensation from the other shareholder personally for his conduct and there is no need to demand that the company to do so.