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Until the start of November 2009 i was a minimal % shareholder in a Ltd financial services firm which is just about to go in to liquidation.
The company has a few creditors including a couple of landlords and the bank where there was a loan and all the directors signed personal guarantees for a bank loan which is still outstanding.
When i left being a director i stayed on as a self employed advisor
My question is, given the above, can the bank still come after me for my share of the loan because i signed the personal guarantee as a director of the Ltd company which is a post i no longer hold ?
Anyone got any ideas ?
Cheers
I'd have thought you'd have signed the guarantee as yourself not as director and it would still be valid, unless it explicitly says so. But it's not my area, I think OMITN may know?
ok cheers cynic-al
OMITN is here. 😀
I would guewss - without having seen the terms of the guarantee - that it attaches to you personnaly rather than in your capacity as a director.
The problem here is that, if it does attach to you personally, you will remain on the hook for your share (assuming te liability is not joint and several). Now, I'm not an insolvency lawyer but my assumption would be that the bank, in making its recovery, will look first the the administrator (or whoever is appointed) and will, if its lending is secured, recover in priority via the administration (or whatever process you are following) and will then look to the guarantors for the balance. If the lending is not secured, it will come looking for a whole lot more from the guarantors.
As a shareholder, you will be an unsecured creditor, and will be paid out of whatever is left at the end. You might want to think about wehatever you are paid out as being applied directly to your liability under the guarantee.
Send me the guarantee, together with details of the sitation and the process, and I'll have a look for you. Email in the profile.
Cheers OMITN.
I'll let you know if i need you to look at it in more detail.
Thanks again
BigSi