What to do if my co-director forged the signature of his mother on company documents against my interests?

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What to do if my co-director forged the signature of his mother on company documents against my interests?

The documents in question are Company Resolution, Power of Attorney, and Memorandum of Understanding to dispose of company property worth 4 M. The son signed as if it was the mother signing and not as “for and on behalf of the mother” but affixed the signature similar to his mothers to deceive me that she herself signed. Now to save her son, she is saying she gave her son permission to sign. As an after thought to cover up she gives her son a power of attorney to execute company documents on her behalf after almost 7 months. Can he do this?

Asked on March 8, 2011 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Bring the documents to a business attorney and have him or her review them and the situation. As a general matter:

1) Someone could give another power of attorney to sign for her, but that must be done in advance, before the signing or other action taken. It cannot be done retroactively.

2) If documents are signed by somone without the authority to sign them or under false pretenses, they would not be valid and it's possible criminal liability (e.g. fraud, theft) could attach.

However, the specific facts are everything; no one can render legal advice on a matter like this in the abstract.  Given how much is at stake ($4 million), it is well worth the cost and time to consult with an attorney and get a more dispositive answer--then take whatever action is appropriate. Good luck.


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