How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Loren Your Own Question
Loren, Attorney
Category: Business Law
Satisfied Customers: 34076
Experience:  30 years experience representing clients .
Type Your Business Law Question Here...
Loren is online now
A new question is answered every 9 seconds

I have a close friend who is a signatory on a bank account

This answer was rated:

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.

It is my privilege to assist you. Let me know if you need further information.  I hope I have helped you beyond your expectations in the service I have provided to you.  I am here for you.

Please remember to rate my answer when our communication is completed so I will be compensated for my time in providing you with the information you requested.

If you feel the need to provide a low rating, please stop and reply to me via the REPLY button with whatever issue or clarification you may need. I will happily answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction. Please also remember that I cannot control whether the law is favorable to your situation, so please do not penalize me for having to deliver bad news.

Thank you.

Customer: replied 4 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.

Loren and other Business Law Specialists are ready to help you