Legal Question in Business Law in California

Financial matters of a corporate officer after his resignation

Can any legal action be taken against an officer who resigns his position in a corporation who, after his resignation, takes a blank company check (after bus. hrs) handwrites it to himself,on the payroll act for unclassified reimbursements, back dates it prior to his resignation, voids the check no. in the computer check register and cashes it without letting anyone know of his actions, including the pres. of the corp., causing numerous bounced checks - even though his name was not yet removed from the checking account?


Asked on 2/07/00, 7:54 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Financial matters of a corporate officer after his resignation

Yes. The corporation can sue him for (depending upon the specifics) conversion, fraud, breach of contract and/or other causes of action.

In fact, if the amount involved is substantial or if failing to act would harm the company, then the corporation may well have an obligation to its shareholders to pursue this matter (an equitable out-of-court settlement should suffice on this point).

The former officer can also be reported to the police, who might prosecute him for theft or some related offense.

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Answered on 2/09/00, 3:24 pm


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