Director Guarantee Checklist
A guarantee that is signed wrongly is often worthless — this checklist walks through the execution details that decide whether you can actually enforce a director's guarantee.
What's included
- The steps to request, execute and store a director's guarantee
- The execution and witnessing details that affect enforceability
- What the guarantor must provide
- Why the deed itself is a lawyer's job
6 min read
Why execution decides enforceability
A personal guarantee gives you recourse to an individual when the company behind an account has no assets. But a guarantee is only as good as its execution — missing details, no witness, the wrong person signing, or no evidence the guarantor understood it can all sink a claim. The checklist below covers the practical steps; the deed wording itself must come from a lawyer.
The director guarantee checklist
- Lawyer-drafted deed of guarantee in hand
- Correct guarantor identified — a director with authority and assets
- Guarantor's full legal name, date of birth, residential address captured
- Guarantor advised in writing to obtain independent legal advice
- Deed signed by the guarantor personally (not the company)
- Signature witnessed as the deed requires
- Date of signing recorded
- Linked to the specific credit account and entity it guarantees
- Signed original stored securely with the account file
- Copy provided to the guarantor
How to use it
Run this whenever your policy calls for a guarantee — typically larger company or trust accounts. Send the request with your personal guarantee request template, then use this list to make sure the deed is executed cleanly. Recommending independent legal advice for the guarantor is not just courtesy; it strengthens enforceability.
Store the signed original safely. If the account defaults, that properly executed guarantee is what lets you pursue the individual — and you can refer the debt with the guarantee on file.
This is general business information, not legal advice. The deed, execution and witnessing requirements must be set by a qualified lawyer.
Tips
- A defectively executed guarantee is often unenforceable — get the signing right.
- Advise the guarantor in writing to get independent legal advice.
- Make sure the director signs personally, witnessed, not on behalf of the company.
- Link the guarantee to the specific account and store the signed original securely.
FAQ
Does the guarantor really need independent legal advice?
It is strongly advisable — it reduces later arguments that the guarantor did not understand the obligation, which improves enforceability.
Can a guarantee cover future debts?
It depends on the wording of the deed. That is exactly why the deed must be drafted by a lawyer for your situation.
What if witnessing was missed?
It can undermine the guarantee. Follow the deed's execution requirements precisely; have a lawyer confirm what is needed.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.