NEGLIGENCE OF BANKERS.

Auckland Star, Volume LIV, Issue 219, 13 September 1923, Page 6

NEGLIGENCE OF BANKERS.

b-itk^v 1 ,?,"' "? smM importance to llsb four, y v. t ' eU . Uy . °'-' ,i ' l vJ by the Eng. aging director of a company of metal uit tag share being held bv'aTwife V.M'nu'o his private account ,„, various „..L ~ • wSi'SoM'a V r u a io e ur O of°t V h" ™ addition to the ortoary share "Z ,n" £9000 was repressed in deben" ores' The company, alter the death of the director went into liquidation, and the receive; brought an action against the ui.nll It was contended, iv defence that by reason »f the company being a "oue m-iu" pany. the director eoulil' l-nvf.'.'ilv deal with the cheques as be lik. d a.' 1 li'frher. that the bank was protected by ,„ law contained in the Rills of Exchange \,t -the Court iv holding ihat the | )a uk was liable, nld that tbe general purpose for ■which the cheques were paid in by the managing director to liis private account was not for the purpose of extinguishing npnying debts that might be due either to the creditors of the compaiiv or himself The officials of the hank, inuoeenth- no donbt. were negligent in a legal sense in not inquiring more about these crossed cheques, and during a period of two vers no question had been asked of the director as to what such a course of business meant and why it was adopted.