Is the bank liable?

[bluegreen]

I recently resigned as a Director. I have recently found that the other Director has been signing cheques with only his signature on and in some cases, forging my signature. The bank agreement states that both signature are required on the cheques.

 

The question would be...Is the bank liable, by allowing the above?

 

I would be very grateful for any information and advice.

[callumsgran]

i dunno to be honest but i know the other director can be done for fraud!

[mahala]

I'm not an expert (not even an amateur!), but my gut instinct would say the bank is liable. If the account details state that the signature of more than one director is needed on cheques, then they shouldn't be cashing them unless they have that.

[Don Quioxte]

Liable to an extent - possibly if the monies were unrecoverable, but in the first instance it would be your co-director who was liable through the commission of an illegal act - namely fraud.

 

I think you will find that the Bank would immediately refer the case to their Fraud Detection Team who in turn would likely involve the police without hesitation - they would be required to do this as an obligation to their underwriters - and most certainly your co-director would be arrested either for committing fraud or more likely "obtaining a pecuniary advantage by deception". The court process would then determine how monies were to be recovered, where the liability lay, and the process for compensation.

 

Also