End of a guarantee given by the company director
Publié le 12 September 2022
Frequently Asked Questions
A few years ago, I guaranteed a loan taken out by the company of which I am a managing director. I am now about to leave this company. Will this departure automatically result in the end of my guarantee commitment?
No. The termination of his functions does not release the director from his guarantee commitment, unless it was expressly stipulated in the guarantee agreement that the guarantee was linked to his status as director and that it would cease automatically in the event of loss of this capacity. In the absence of such a mention, the director still can (when he ceases to exercise his functions), terminate his commitment, if the guarantee was promised for an indefinite period. To that effect, he needs to expressly inform the bank about his decision to terminate the guarantee agreement, which means, if he does not terminate the contract, he continues to be liable for the debts of the company guaranteed by him!
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