Is our personal guarantee on LTD company legally binding?

Discussion in 'Legal and HR' started by Katie Baron, Dec 18, 2012.

  1. Katie Baron

    Katie Baron
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    Hi

    My husband recently liquidated his limited company and has now been advised that a debt of the company's must be paid from him personally. We have asked for proof of a personal guarantee as my husband was not made fully aware of the fact that this is what he signed and there is one statement on the contact that was signed which is 'and being Director/Partner or Proprietor of the applicant Company, jointly or severally guarantees performance of all of the Companies financial obligations to the company'. This seems a very weak statement and I am seeking some advice on how legally binding this is. There is no further detail of what exactly this means in the terms and conditions.

    Any advice would be greatly appreciated.
    Many thanks
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum Katie, I'm sorry to hear about the difficulties you and your husband are currently experiencing. Unfortunately those issues are all too common in our current difficult economic times.

    What country are you based in?

    I know it's not the definitive answer you are looking for, but I'd suggest that due to the significance and legal complexities involved, you need to seek professional legal advice in relation to this matter. Perhaps your husband had a solicitor / lawyer that he used for the business that he can speak to?
     
  3. Katie Baron

    Katie Baron
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    thanks for your comment - we plan to seek professional advice but unfortunatley have never used a solicitor/lawyer before so dont really know where to start to look to a good and reasonable priced one. We are based in UK.
    thanks
     

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