The New South Wales Court of Appeal has ruled that a forged - TopicsExpress

The New South Wales Court of Appeal has ruled that a forged signature of a director still binds the company to a guarantee. In the case of ANZ v Frenmast Pty Ltd (2013) NSWCA 459, a guarantee document bore two signatures but one was forged. The Court ruled it was not necessary for the ANZ to deal directly with the person who has the authority to bind the company, but rather, it was only required to deal with a person who had authority to negotiate the transaction. The Court found that the director had authority to negotiate, hed been the principal point of contact for the bank for years and the other director was aware of that fact, therefore the bank was entitled to assume the director had the authority to negotiate the guarantee with the bank.

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