An associate and I created a corporation and subsequently opened a checking account. The associate started abusing the account, taking out money for personal items, etc., so I had myself removed from it and quit the corporation. He was the CEO/President. The associate then withdrew more than was in the account creating an overdraft. Am I responsible for the overdraft?
Assuming that you took the necessary steps under state law to remove yourself from the corporation, you should be OK. The bank should have no legal recourse against you, nor should other creditors of the corporation.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
Assuming that you took the necessary steps under state law to remove yourself from the corporation, you should be OK. The bank should have no legal recourse against you, nor should other creditors of the corporation.
