Cheque issued against previous limited company

[blueskies]

Hello!

I hope someone can help me.

A customer has issued me with a cheque against their old limited company name when the limited company had already changed its name.

The cheque was dishonoured and now their is a proposal to strike off the company.

Who is liable? Company? Director?

Thanks

 

[GRDCredit]

Hello!

I hope someone can help me.

A customer has issued me with a cheque against their old limited company name when the limited company had already changed its name.

The cheque was dishonoured and now their is a proposal to strike off the company.

Who is liable? Company? Director?

Thanks

Sorry, but company everytime.

How much are we talking? How old is debt? PM me company name (previous and prior) and I will have a deeper look if you like.

 

[blueskies]

I thought a company had an obligation to state it's company name on, amongst other things, it's cheques.

If ABC Ltd have changed it's name to XYZ Ltd but are still issuing cheques with the old ABC Ltd cheque books can the signatory/director be held liable? :|

 

[JGOffshore]

I thought a company had an obligation to state it's company name on, amongst other things, it's cheques.

If ABC Ltd have changed it's name to XYZ Ltd but are still issuing cheques with the old ABC Ltd cheque books can the signatory/director be held liable? :|

Yes they can - at least in theory.

However, without more information in this particular it's hard to say who is to blame.

Why was the cheque stopped?

If the name change was recent the bank probably should not have stopped it just because the name was wrong.

If it were shown that there was not enough cash in the bank when the cheque was signed and that is why it was stopped then the person(s) who signed the cheque may have committed a criminal offence.

 

[GRDCredit]

then the person(s) who signed the cheque may have committed a criminal offence.

Wow - that is one hell of a statement.

Tell me more!

 

[JGOffshore]

Wow - that is one hell of a statement.

Tell me more!

It is a criminal offence to issue a cheque knowing that there is not sufficient funds to meet it. The problem is in proving the person knew but there have been prosecutions from time to time, usually as part of other fraud cases.

 

[David Griffiths]

I believe that if a person issues a cheque with an incorrect company name printed on it, then he is personally liable on that cheque.

Have a look at this link paragraph 2.1.3 - obviously you'll need to take proper professional advice before taking things forward, to be sure that the reference is still valid.

 

[nigelmarsh]

was your customer paying an invoice you had issued ? if did you customer issue you an purchase order and email confirming the order ?

what was the name you entered onto the invoice ?

what was the name on the purchase invoice received from your customer ?

 

[Anthony Reeves]

This is is an interesting question.
I believe there is an argument for the director being liable.

Anthony Reeves
Pinniger Finch & Co

 

[blueskies]

thanks for all your responses. does anyone know if s.349 Companies Act 1985 is still valid? I can't find any reference to it in CA 2006