Director Guarantee Sample Clauses
A Director Guarantee clause establishes that one or more directors of a company personally guarantee the obligations or debts of the company under a contract. In practice, this means that if the company fails to fulfill its contractual commitments—such as repaying a loan or meeting payment terms—the director(s) become personally liable for those obligations. This clause is commonly used in commercial agreements to provide additional security to the other party, especially when dealing with companies that may have limited assets. Its core function is to allocate risk by ensuring that there is a financially responsible individual who can be pursued for payment or performance if the company defaults.
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Director Guarantee. Where the Customer is a corporation, each of the directors jointly and severally guarantees the payment by the Customer of all outstanding amounts in relation to Goods sold by Greenlands Equipment.
Director Guarantee. Simultaneously upon the signing of the JVA, the Developer shall secure and provide the personal guarantee by its director, Loo Leep Chye for the payment of the Proprietor’s Entitlement (including the land costs as stipulated in the JVA) in the event the Developer default in payment to the Proprietor.