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The liability of employee as a bank signatory

I was employed with a company which ran into troubles and stopped paying salaries.

I was an authorized signatory and I had endorsed cheques of a third party to a local bank as a signatory.

The bank filed a legal case against me, the owner of my company and the person whose cheques they are.

It has been 4 months since I resigned, cancelled my power of attorney and mentioned in the resignation to remove my names from all banks.

I have moved on and looking for a new job. I have opened a case against my ex-employer for my salaries and gratuity of 7.2 years.

I have also placed visa cancellation request and I found out about this case when I was moving to my father's visa.

Please advise what I can do, the cheque amount is AED 250k. I need to prove my innocence as I haven't taken the amount nor do I have this kind of amount to pay.

I am innocent in simple words. I was just a PA to the owner and was doing my duties while I was there.

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Elnaggar & Partners
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29 Apr 2018, 13:12

Dear Questioner

Thanks for your question. Seems like a very interesting case but quite difficult!

I would recommend you to come for a meeting to discuss the subject and show us all the documents that you have on hand to be able to advise you accordingly!

Basically, you as the bank signatory or POA holder acting on behalf of your employer, are liable towards the checks you sign!

However, you have the right as well to file a case against your employer and to request their involvement in your case.

You can get in touch with me through ae@elnaggarlegal.com to arrange a meeting.

Regards

Ahmed Elnaggar

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