A director’s dilemma: to guarantee, or not to guarantee?

It is becoming increasingly common for directors to provide personal guarantees (PGs), guaranteeing a company’s obligations. Whether the guarantee is to secure a lease, obtain funding for working capital or reassure a supplier, the terms of each guarantee will differ, but the underlying principle remains the same – a personal commitment to ensure the satisfaction of the company’s obligations, often including repayment of the company’s debts.

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