Directors PG

[Deboy]

back in 2014 i was a director and shareholder in a small limited company. early 2014 the business took out a small loan (5k) over 12 month repayment period. Late 2014 the company hit hard times and was on the verge of folding. Then the minority shareholder took it over to run as he thought he could turn its fortunes around. Anyway long story short the company is now at proposal to strike off as it hasn't done anything since I resigned and signed my shares over. problem I have is I had a PG on the loan and I have now found out they have not paid anything towards the balance. if the company does get struck off i take it i am liable for the loan repayment personally. Is there anything I can do to get out of this or am i up the creek without a paddle

Any advice would be greatly appriciated

 

[The Sheriffs Office]

Yes, if you have guaranteed it personally you could be pursued personally.

 

[obscure]

Unfortunately once you have a PG there is very little chance of getting out of it because the company that holds it has no reason to release you from your obligation and every reason to keep you on the hook. Your former company is about to cease to exist and it hasn't been making payments - which is exactly the potential scenario that the PG was designed for so I think it is safe to say that you need to go buy a tube of lube because you are about to be f.......

 

[Ian J]

It is a salutary lesson to anyone reading this that when selling a company it is important to obtain a release from all guarantees otherwise the liability will remain with you.

Although you don't say there is an implication that you transferred your shares a year ago so are you saying that no loan repayments have been made for a year as the bank should have already been chasing you if that was the case

 

[Newchodge]

Presumably the loan repayments were made from early to late 2014, so how much is outstanding? has the company extended the loan in any way?