Legal Question in Business Law in California
is it illegal for the president of a company to play with the firms float on a daily basis?
Asked on 10/11/11, 5:31 pm
1 Answer from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
Penal Code section 476a would probably be the closest governing statute, and in my opinion merely playing with the float is insufficient to amount to the "mens rea" (guilty mind) requirement needed to bring the activity within the outlawed conduct. If, however, the play is sufficiently unsuccessful that overdrafts and bounced checks become commonplace, that could be a different matter.
Answered on 10/11/11, 6:09 pm
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