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Director's Guarantee

Using this document, you can agree to take responsibility for your company's debts if it should go out of business in the future, so other directors are not held liable.

When operating a business on a limited liability basis, the law states that the company's directors are protected from liability for that business's debts should the company go under. This means that some unscrupulous directors may use a company as a vehicle to line their pockets, protected from any legal ramifications by claiming that the money belongs to them and not to the company.

Because of this kind of illicit behaviour, you may wish to give assurances to suppliers of goods dealing with your business by declaring that you will take on liability for any debts in the event of the company falling by the wayside. Law on the Web has developed a quick and easy method of making this declaration, using our helpful director's guarantee document template.

It’s easy to download and no knowledge of the law is required – you simply have to enter your details where prompted in the template.