Answer:
If the individual initiating the transfers doesn't have specific authority to do so, and the corporate funds are depleted unlawfully, the owners or creditors of the corporation could pursue the bank to recover the fraudulently transferred funds. Even small corporations have boards of directors, and it is the corporate board that grants authority to its officers and others to transact business for the corporation. Without a board resolution permitting transfers of the type you describe, even the officers of a corporation would not have the right to make the transfers.
First published on BankersOnline.com 4/12/10
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