Personal Guarantees Sole Shareholder/Director Ltd Company

[Taffy]

Personal Guarantees - Sole Shareholder/Director Ltd Company


I'd like to know if there is a precise manner in which this type of guarantee/indemnity is to be set up in order that it is compliant and legal?

For example as the guarantor is an individual not a company, what things does the leasing company have to do in order that the individuals rights are conserved and that the guarantee is legal and binding?

Does the guarantee agreement have to be part of (ie a page of) the leasing agreement or must it be a seperate agreement?

As the leasing agreement would be outside the act (Consumer Credit act 1974), what about the guarantee agreement with an individual is this also outside of the act?

Any assistance would be greatly appreciated.

TAFFY

[Guest]

Re: Personal Guarantees Sole Shareholder/Director Ltd Company

I would suggest that you obtain qualified, insured, professional legal advice before entering into a personal guarantee of any kind. Find a local solicitor and have them act for you since this is not the kind of advice you should be obtaining from a forum of any kind.

[stivis]

Re: Personal Guarantees Sole Shareholder/Director Ltd Company

For example as the guarantor is an individual not a company, what things does the leasing company have to do in order that the individuals rights are conserved and that the guarantee is legal and binding?

effectively the indvidual rights go out the window(more or less) what you are doing is Not Borrowing,but underwriting the amount


A limited company is limited in liability, in legal terms.... it is as indvidual legal entity. if it goes pear shaped then it is only liable to the value of the shares(share capital)....
A personal Guarantee means that you personally will underwright the loan/rental or whatever......
Simple put you personally will have to pay,

Personal Guarantees can be separate documents,or written into the contract

As the leasing agreement would be outside the act (Consumer Credit act 1974), what about the guarantee agreement with an individual is this also outside of the act?

In my opinion it would be outside the CCA, for the reason(s) stated above

My opinion , don't do it

as Cetelco says check with a professional