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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I am a director of a Ltd company that has been put into Liquidation. The

Customer Question

I am a director of a Ltd company that has been put into Liquidation.
The company had been attempting to obtain payment from a client that created the financial difficulties company. The company engaged solicitors to assist. The solicitor proposed terms of business, including provisions that proposed should the company not be able to pay the directors would be held responsible. The directors refused to sign this new guarantee (the company had used the same solicitors successfully prior to this dispute), the terms had been issued as new terms as the solicitors had amalgamated with other solicitors. No new terms were signed. Today the solicitor has written stating the terms of business are those they are acting on?
As these new terms have not be signed to accept the directors guarantee in the event that they were unpaid reason by the company can the solicitor obtain payment from the director (me)
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
The directors are not personally liable under the terms of the guarantee unless they have signed the guarantee, without your signature, you are not liable personally as it is a fundamental principle of guarantees that they should be in writing and signed by whoever is giving the guarantee.
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