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Loren
Loren, Attorney
Category: Business Law
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Experience:  30 years experience representing clients .
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I have a close friend who is a signatory on a bank account

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I have a close friend who is a signatory on a bank account for a registered charity, the person who runs the charity is the other signatory, two signatures are required and makes, requests, him to sign blank cheques for various reasons.
Is this legal please advsie
Thank you for using JustAnswer. I am JudgeLaw and I will do whatever I can to answer your question and provide you excellent service.

I am sorry to hear of your friend's dilemma. I realize how frustrating this is for you, but I believe I have information which you will find helpful.

It is a terrible, not just bad, practice for anyone in a position of responsibility for charitable funds to sign any blank cheques. He must demand that the drafts are filled in before he signs the cheques. He could be held legally responsible for any misuse of funds.

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JudgeLaw
Customer: replied 3 years ago.


I understand it is terrible practice but surely it is illegal?

Thank you, XXXXX XXXXX following up with me.

It is a violation of fiduciary duty owed to the charity. It is not necessarily, criminal misconduct, but it would lead to civil liability.

I hope this is helpful.

Thank you.

JudgeLaw
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