News

There are an estimated 4.5 million Personal Guarantees signed by company Directors in the UK alone. Since the recession it’s rare to find a lender that doesn’t ask for a Personal Guarantee if they are extending facilities to a limited company. Most Directors are reluctant to sign Personal Guarantees for the simple reason that if everything were to go wrong the likelihood of losing their home is amongst their greatest fears.

Accompanying the Personal Guarantee is normally a request to seek independent legal advice as to the enforceability of the guarantee and to acknowledge the likely effect on personal assets should the Personal Guarantee be called in.

The FCA's July discussion paper invites us to share our opinion on the ‘duty of care’ we owe our clients. Its asks for interested parties to consider:

Isn’t that a comforting phrase?  We often use it when we are in the midst of troubling times or perhaps to explain some news that wasn’t quite what we were hoping for.  I have heard many students this week use the phrase, it seems to put disappointing exam results in a context that is somehow part of some bigger picture ... 

It’s not just students who use this phrase to excuse ‘today’ as if whatever has just happened is an important part of some bigger plan.  It’s used if we want to try and comfort someone trying to cope with a problem or to excuse a position we wish we hadn’t got ourselves into.