A CFO was recently ordered to pay $45,000 to a company that brought
suit against him personally when the check he signed for his corporation did not clear the
bank.
This ruling is actually consistent with prior court rulings in similar
cases, but many of our clients are continually caught off-guard whenever
we inform them that they may indeed have personal financial
responsibilities when signing corporate checks.
In this particular case, the court ruled that since the
defendant signed the check as "John
Hancock, CFO, John Doe Company" instead of "John Hancock as CFO for
John Doe Company," he left himself exposed to personal liability. |