This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 605.— Are warehouse receipts given by a limited liability company legal? If so, who would be responsible if the receipts contained misstatements or were issued in fraud?
Answer.—Such warehouse receipts would be legal if the powers of the company under its charter were wide enough to enable it to issue them. We could not say who would be responsible for the misstatements or fraud without knowing the circumstances. Each case would depend upon the circumstances surrounding it.