Apologies upfront to anybody that is not 100% sure of contract law. Please only answer if you have more of an idea than I do
I am looking through a guarantee that states (the debt IS NOT) under clause (b):
if you are a corporate body, such part (if any) of the Debt as may have been incurred by the Borrower, directly or indirectly, in connection with the acquisition of shares in your share capital (or the share capital of any holding company) unless and to the extent that the provision of the financial assistance by this Guarantee in connection with that acquisition, is lawful.
Could anybody here either answer/help or recommend anybody that is familiar with contract law in business, to explain what the above means in plain English.
Does this mean that ONLY if you are a corporate body i.e. a Ltd company and you sign as a personal guarantee on a loan or overdraft ONLY the amount of shares that you held as a company director for the ltd company are you liable for????