Question about limited company
How about if I am the only person who runs a limited company and I am the guarantee of all company loans of the banks. Do I have to use my personal resources to settle the firm's debts if my limited company runs bankrupt?
- PKW ( PJR )Lv 71 十年前最愛解答
Yes. The borrower is your limited company. You have given a guarantee to the bank for bank loans. The position is that your limited company is answerable for the repayment first. If the company is unable to pay off the loan, the bank will have the course of action against you for the repayment on your personal pledge as stated in the letter of guarantee. It is quite a normal practice for a bank to get a letter of guarantee form the director(s) to ensure the recovery of a loan.
2007-05-08 22:02:33 補充：
Will this answer be deleted at the end of this answering period? I have a lot of this experience when the question is raised by a person with ID 匿名.