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Legality of Bank Account Signatory`s.

0 votes
Due to a complacency (of general accounting) on committee set-up of the finance and management, a discrepancy arose and as a result of this the Chairman of that committee has absolved himself and any other signatory of fault, this including previous Chair`s and current signatory holders claiming a "Conflict of Interest", and thus the next in command non signatory being the Vice Chair responsible for the loss of funds. Legally what recourse has the Vice Chair against this accusation. NALC terms and conditions in practice.
asked by (380 points)

1 Answer

+1 vote

As I understand it, the Council is a single corporate body and no part can operate in isolation. All decisions made by the Council are the responsibility of the Council as a whole. All councillors would be equally liable. Acting beyond its legal powers is regarded as acting 'ultra vires' (beyond its powers) and Councils can be restrained by the courts.

If an individually councillor has acted illegally, then the matter can be referred to the District Monitoring Officer who will 'name and shame' if you are lucky.

What does your auditor have to say about the matter? Presumably the accounts have been signed off for last year by now.

answered by (2.2k points)
Thank you for the reply it covers initial problem as of culpability  and will be very useful to the debate as for the internal auditor, has been implicated in the proceedings for "signing off" previous accounts. The impasse is to absolve all blame, thank you again  I hope to make further enquiries apologies for the delay in reply.

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