personal guarantee
cs
(Querist) 13 November 2009
This query is : Resolved
hi i want advice on following matter:
mr. a is the common director in x pvt. ltd. and y pvt. ltd
x pvt ltd took loan from bank and a and b other director of x give personal gurantee but now x wants to execute an agreement with c and f , other directors of y that they will share liability with him
please advice as which agreement is to be executed and anything important regarding this
Raj Kumar Makkad
(Expert) 13 November 2009
S is a private ltd. company as you told and you are telling now that z wants to execute an agreement with c and f, other directors of y that they will share liability with him,
What do you mean?
x is a pvt. ltd company so if it has to execute any agreement with any other person then it can execute within its bye-laws as per requirement and why other persons ahall become agree to share its liabilities without any consideration?
I think you are missing some chain.
cs
(Querist) 14 November 2009
hi
ok but what agreement is to be excecuted if A wants that c and f would share his personal liability
G V S Jagannadha Rao
(Expert) 15 November 2009
The debt of X pvt. Ltd is already guaranteed by two guarantors - A and B. Unless a fresh loan is taken, it does not make sense to give guarantee of two more directors. You must note one thing here. Supposing the debt is one lakh and there are two guarantors, upon obtaining a decree, the decree holder may proceed against any of the guarantors. A or B cannot insist that he will pay only 50% of the amount. In this scenario, if C & D are introduced, they will become jointly and severally liable with A & B. Supposing C is very rich and owning a big property, the creditor may proceed only against him.
