Directors’ Guarantees - An A to Z Introduction
One of the main reasons for forming a company is to limit liability. This advantage is effectively lost to the extent that directors have to give personal guarantees.
Directors will often have no option but to give guarantees if their company wants to borrow money or rent premises. In addition company directors are often asked to give guarantees to suppliers of goods and services and in a wide range of other situations.
Despite being so common, when a company gets into difficulties, the director’s guarantees are frequently the subject of litigation.
This course will address what is needed for a binding guarantee and what additional features are often added to enhance the position of the creditor.
It will also cover the issues that frequently arise when guarantees are given by two or more directors. The course is aimed at commercial lawyers but will also benefit those concerned with advising creditors and directors both before and after the guarantee has been entered into.
What You will Learn
This course will cover the following:
- The differences between different types of guarantees and indemnities and why it matters
- How to draft an effective guarantee as a stand-alone document or as part of a larger agreement
- The effect of recent changes on guarantees in leases of business premises
- What is required to give independent legal advice to a director about a guarantee without exposing you to claims
- Some of the difficulties in enforcing/ways of avoiding payment under a guarantee
- When the director can recover their payments under the guarantee from the company or a co-guarantor
Please let us know if you wish to be notified.
Please let us know if you wish to be notified when new dates are added for this programme