Personal Guarantees..Etridge Guidelines......Directors........

Pril_the_babe

Hi There,Before I go into a lengthy explanation of my situation, is anyone familiar with the Etridge guidelines, relating to debts incurred i.e. personal guarantees, as a director, without prior knowledge of the type & being ill advised.RegardsPril the babe.Just want to set the scene: -.............the risk of ineffective third party security also applies where directors of limited companies are required to give personal guarantees inrespect of the company’s liabilities. In this scenario, a director may be susceptible to undue influence from one or more of his fellow directors. Does anyone recognise this scenario?

grace

Bumping you back up hopefully someone can help

silvercar

This seems to explain it:

http://masons.com/media/2036559784.pdf

I've given personal guarantees and also lost out on a transaction where someone tried to get personal guarantees set aside and failed (looks very much like the etridge case in retrospect).

What's your issue?

Pril_the_babe

Hi there,My issue currently is I have a charge on my house for a factoring agreement, of £40k, whereby an indemnity was put in place a year after the original agreeement. All would have done & arrnged with "shadow" director. No contact from the bank at all, apart from to start proceedings after I had left the company.It has been going on for 4 years, I can't remortgage, was in the process of building works, all stopped, as as I can only have unsecured loans, which cost a fortune.I am keen to bring the bank to court as they send the odd threatening letter, but never actually do anything, even though I am not paying, as the shadow director, I think appears to be.Based on the guidelines, I really think alot of them applies to me as a director & employee of the company at the time. I feel as my life has stood still for the past 4 years.Not sure what to apart from leave it, would love to fight them.Ur opinions would be most appreciated.

TangledMemories_2

I'm the director of a limited company and I signed guarantees in the position of director. My solicitor has advised me that because the director of a company can change on a regular basis, the debts still lie with the Limited Company.
You are only held personally liable if you are the director of a sole trader business ie: joe blogss tradings as Joe Bloggs transport.

Pril_the_babe

Thanks for your response. There were 2 directors, the bank took instructions from him only. The charge went on in 2005, I was not aware of it being a personal guarantee, as it came dressed as an indemity.With no explanation, only that it was part of the original agreement.If that is the case how can I get the charge off my house? I really think the bank is at fault. As I left the company & even took the company to a tribunal & won, but to no avail so far.

TangledMemories_2

Have you sought legal advice? I really think you need to take any paperwork you have to a solicitor and see what they say. My solicitor is currently battering RBS for enticing debt by upgrading my overdraft from £3k to £11k almost overnight, taking money from mine and my partner's joint account without permission to cover business outgoings and generally allowing a company to still trade whilst insolvent.

Pril_the_babe

I have found legal advice many times, even paid to be told not much can be done to untie an indemnity. I found the Etridge guidelines myself, then looked at how it would apply to me. I have been told on numerous occassions, by solicitors to find a payment plan, & pay up, even up till last summer. In the whole 4 years I have only paid £75, that was before it went to High Court.I also would like to represent myself, but I know that I may become emotional.Sorry to hear about your situation. Banks really are a nightmare.

TangledMemories_2

Sorry I can't help you further hun.

I have a serious aversion to RBS! I see an advert or anything that says "A RBS company" I go on edge, my teeth grind and I generally turn into The Hulk! LOL

Pril_the_babe

Mine is Lloyds (ggggrrrrr) & I don't even bank with them.Thanks for trying. For the amount of work I have put into this case & my tribunal, I have been told I have enough credits for a degree in Law.Thanks again

silvercar

TangledMemories wrote:

I'm the director of a limited company and I signed guarantees in the position of director. My solicitor has advised me that because the director of a company can change on a regular basis, the debts still lie with the Limited Company.
You are only held personally liable if you are the director of a sole trader business ie: joe blogss tradings as Joe Bloggs transport.

I have given personal guarantees on behalf of my limited company. If the comany defaulted the bank could come to me for repayment, upto the level of the personal guarantee. If I failed to pay they could put a charge on my property.

I don't understood why your home has a secured loan for this, rather than a personal guarantee. In any event it is normally possible to get a deed of postponement arranged to enable you to take a mortgage.

but never actually do anything, even though I am not paying, as the shadow director, I think appears to be.

So is this a loan secured on your house, for which the company is paying the interest?

How could they arrange a loan on your house without your agreement and signature?

When I gave personal guarantees, I had to sign a disclaimer from the bank that I had been advised that I should take independent legal advice (and chosen not to do so).