You are in the process of selling your shares in a company: Have you considered all issues which need to be dealt with on, or before, completion of the sale?
Solicitor Greg Humphreys of Gardner Leader Solicitors in Newbury is keen to ensure that any of his clients who are in the process of selling shares in their company ensure that they have made arrangements for the release of any guarantees signed by the client, securing the liabilities of the company.
The sequence of events unfolds as follows:
The unfortunate advice which will have to be given to the shareholder is that he remains bound by the obligations in the guarantee. These constitute continuing obligations, which are not affected by the sale of the shares in the company whose debts are being secured. I have had a very difficult meeting with clients who suffered a similar fate and I had to explain that they remain bound by guarantees given whilst they were in control of a company.
I am therefore at pains to stress to any clients signing guarantees that they constitute continuing obligations and that the clients must bear this in mind when coming to sell their shares in the company.
To discuss any of this issue in more detail, you can contact Greg Humphreys on 01635 508080 or by email at [email protected].