Questions & Answers
Liability for bounced cheques in case of joint signatory authority
I was a partner in a company with joint signing authority for the bank account. I sold my share and the memorandum of association changed. However, due to some reasons or busy schedule, I could not change my signing authority from the bank.
My partner issued me a letter that for all released cheques, he will be responsible. Now, in the current situation, some cheques are bounced and police called me.
Please advise, what should I do? Will this letter and change in memorandum protect me?
My partner is still accepting his liabilities for all bounced cheques but he has no money to settle, and I am stuck. Kindly advise.
Dear Sir,
I hope you are fine.
Further to your query, please be informed that as you are having valid proofs that you have sold your shares and amended the memorandum of association, we opine that you will not be liable for the acts or bounced cheques issued afterwards.
Furthermore, please be informed that for effectively guiding you we need to review the letter signed by your previous partner, which will make the complete picture clear.
For confidentiality, you may mail us the letter at info@awsuwaidi-advocates.com or to be getting any assistance you may call us at 045547635.
Regards,
Aws M. Younis
