Jack objected and two months later he was reinstated as a director. Six weeks after that, a new account operating authority was put into effect. Jack complained that the bank acted unreasonably by relying on the minutes of the 2019 meeting, and that the bank should have made further enquiries to ensure the minutes were valid before acting.
We found the document presented to the bank contained nothing on face value to indicate or suggest it was anything other than the minutes of a properly executed shareholder's meeting. We considered the bank was entitled to rely on this document, which a company director with the usual authority to issue such a document had presented, and it was not therefore obliged to check its accuracy before acting on it.
We could not uphold Jack’s complaint.Print this page