Quote:
Originally Posted by amorak
No - That would be the easiest way in the world for someone in accounting to deposit company cheques into their own account.
I know at least 2 of the big banks dont allow this - I'd be surprised if TD does. I know CIBC does not, so I don't think you can do it at PC Fin as that is CIBC-regulated.
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Thanks for the response. I'm not questioning your knowledge on the issue, but I'd like to try and wrap my head around it a little more.
So, in a strictly personal sense, if I understand it correctly, it is OK if Amorak wrote Jimmy Stang a cheque, I could sign that over to Fotze for brokering an evening with his mom. All that it would require of me would be to endorse the cheque over to Fotze. Kind of old school, but still legal, right?
The business scenario isn't really any different on the surface. If a vendor made a cheque out to Jimmy Stang's Widget Company (a sole proprietorship), and the company signed that cheque over to Jimmy Stang the individual directly, that's not allowed? I understand that if a vendor wrote a cheque to a large company and a fraudulent employee with signing authority endorsed that over to themselves, that could create some trouble. But I would think that would be enforced under fraud laws quite seriously. In my case, the company is a sole proprietorship so in essence, the company is me. I'd be endorsing it from myself to myself simply to get around actually having a traditional business account.
In fact, it seems like a personal endorsement is sketchier because the money is changing hands from A to B to C, whereas the business scenario (in my case) goes from A to B to B (legally).
Again, just trying to find a way to cut the cord with my traditional business account.