V – Variation of bank mandate
6/2/12
SENEX HOLDINGS LTD (in liquidation) v NATIONAL WESTMINSTER BANK PLC [2012] EWHC 131 (Comm)
Although a mandate had only allowed a bank to act on written instructions, a company director who was also its 100% shareholder and its directing mind and will, had actual authority to authorise the bank to change the account name to that of another company so that funds standing to the credit of the account had been validly transferred to the new company. It made no difference that the director had acted in breach of duty because it was not suggested that the bank had notice of any breach of duty.