Can company A request company B to issue checks in the name of company C?
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Company A runs service industry and currently serving the needs of Company B. Company A issue invoices to Company B. Can Company A request Company B to issue checks in the name of Company C. If can, what is the procedures that company A should fulfill (in accordance of company laws and standard accounting practices) at first? And, what steps company B should take first in order to protect or indeminify itself from future claims from company A?
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Answer:
Fraud. Kite flying. Theft. Misappropriating funds. And a hoard of other legal charges. Only C is in charge of their checkbook. If they authorize* Company B to issue checks on their behalf, they take the responsibility for company B's actions. Company A has no power and/or control at all. Can only invoice company C ( or company B, not both) .... for services rendered. Peace. * As per a binding and legal contract.
Ragunatharao Dhadi at Yahoo! Answers Visit the source
Other answers
It is not permitted under tax law better to avoid.
smahadevan39
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