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Insolvency-Debt Recovery

Execution of Guarantees - Think twice before seeking to avoid liability for a guarantee

Execution of Guarantees - Think twice before seeking to avoid liability for a guarantee

When obtaining finance, directors of family businesses will often be required to provide guarantees.  

Importantly, and as the discussion below indicates, directors may become unwittingly bound by guarantees they did not know they had provided.

T
herefore it is important that prospective guarantors fully understand when a guarantee will be taken to have been provided, as well as understanding that executing a contract in their directorial capacity may, if the agreement so provides, expose them to personal liability under a guarantee.    

Landowners affected by failed timber companies urged to be cautious

Landowners affected by failed timber companies urged to be cautious

Landowners, whose land is affected by leases to failed timber companies Great Southern and Gunns Plantations Ltd (GPL), should be careful before entering into any agreement with the liquidators of GPL, according to a warning by Richard Anderson, a director of law firm Harwood Andrews.

Some landowners who have been caught up in the collapse of Great Southern and GPL may recently have received a letter from the liquidators of GPL offering various options concerning dealing with trees still growing on their land, even though landowners have not received rental payments for some time.