If I am a signatory on a business checking accountcan Ibe held liable for any business debt?

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If I am a signatory on a business checking accountcan Ibe held liable for any business debt?

I am not an officer of the company just an employee who would be signing checks to pay bills.

Asked on July 6, 2011 under Employment Labor Law, Florida

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Anyone can be sued for anything. The question is would the lawsuit hold in jurisdiction (in personam and subject matter jurisdiction) and then if it did, would it hold in liability. If you are a non-officer, perhaps you are covered as long as the people getting the checks you sign know. For example, if you are signing checks you need to make sure there are sufficient funds in the account from which the check would draw. If you are not privy to those accounts payables and receivables and your only role would be to sign the check, you could be placing yourself in the middle of possible payment disputes.

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

And what you are afraid of is that you would become personally liable for the debts of the business.  No, just because you have the authority to sign the checks does not in and of itself make you personally liable for the debt of the corporation.  I would, though, be careful abut just d=signing off on anything that oyou are asked.  If you feel that a bill is a little fishy then I would bring it to the attention of your boss and maybe request that the higher ups actually sign the check.  Hey, you never know. But it is better to be safe than sorry and to make sure that everything is on the up and up. Good luck to you.


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