Questions & Answers
Will an employee signatory be liable for bank loans of the company?
Hi,
During my employment with my Company, I had signed a few guarantee for a finance taken by the company amounting to more than AED 100 Million. As I was the signatory to that particular Bank account I was asked to sign the security Cheque.
I have resigned 6 months ago and the cheque is still with the bank; will I be held responsible in the event the bank takes legal action if the company does not repay the loan?
Dear,
If you have a proof of the transaction that was on behalf of the company and the company had authorized you to do so, also, the cheques were of the company, then you were not responsible for the same.
However, on the other hand, if you would like to secure yourself more then you may inform the Banks that you are no longer authorized to act on behalf of the company.
Regards
