Whilst directors are not usually expected to be liable for company debts, some lenders and suppliers ask for personal guarantees.
Going into these arrangements with your eyes open will allow you to negotiate some of the clauses and ultimately provide better protection for you financially. Our corporate team work with many directors to make sure they are fully aware of the implications before entering into any personal guarantees on behalf of their company or organisation.
If you find yourself in a position where you need to extract yourself from a personal guarantee, there are ways of doing it. Our dispute resolution team can advise on how to do this and more importantly how not to do it. Many directors, who are no longer with the company or who are facing claims, act without really understanding the legal implications. Talking to lawyers with many years’ experience before taking action can make the whole process less painful, far quicker and financially less damaging.
