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Parental Guarantee to other parties in relation to Shareholders Agreement


Protect your investments with our Joint Venture/Shareholders Agreement. Includes a parent guarantee for party obligations, drafted in neutral form for fairness.

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Fill in the details of the parties. You can click the "Fill with Member’s Information" button to complete it with information saved to your account.


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The document should be signed by the authorised signatory (or directors of a company) and witnessed to complete the formality.

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Document Description

A Joint Venture or Shareholders Agreement is a contract between parties involved in a business partnership. In this agreement, a guarantee is given by one party's parent to the other shareholders to secure the party's obligations. The Guarantor's liability under this guarantee is drafted in a neutral form and is not affected by any act, event, or matter.

This guarantee is meant to ensure that the Guarantor's liability remains in force despite any changes that may occur in the agreement or the circumstances of the parties involved. For example, the guarantee will remain valid even if there are amendments to the agreement or if any of the parties involved go through any change in their constitution, such as a merger.

It's important to note that the guarantee is not discharged by anything that would have otherwise discharged the Guarantor, such as any legal or equitable defense, or any other guarantee or security held by the Party. This also applies to any release or waiver of any such guarantee, security, or any other right or interest.

The Guarantor's liability also remains intact despite any change in the party's circumstances, such as a winding up, dissolution, reconstruction, or reorganization. Furthermore, this guarantee is not affected by any defenses or counterclaims that the Company or any Other Shareholder may be able to assert against the Party.

In conclusion, a Joint Venture or Shareholders Agreement guarantee is a crucial aspect of a business partnership as it provides security and stability to the parties involved. The Guarantor's liability is drafted in a neutral form and is not affected by any changes in the agreement or the circumstances of the parties involved, ensuring that the liability remains in force at all times.

How to use this Document?

Step 1: Review the document - Before using this document, it is important for all shareholders and the guarantor to carefully read and understand the terms and conditions of the guarantee. This will help ensure that all parties are aware of their obligations and liabilities under the agreement.

Step 2: Enter into a Shareholders Agreement - The use of this guarantee is usually triggered by the establishment of a Joint Venture Company. Once the shareholders agreement is in place, the parent of one shareholder can provide the guarantee to the other shareholders.

Step 3: Sign the document - The guarantor should sign and return a copy of the guarantee. It is recommended to have the signature witnessed to avoid any disputes in the future.

Step 4: Distribute copies - All parties involved should receive a copy of the signed guarantee for their records.

Step 5: Note the irrevocability - It is important to note that this guarantee cannot be revoked by the guarantor once signed. The liability under the guarantee shall remain in force, regardless of any act or event that might otherwise impact the guarantor's obligations.

In conclusion, using this guarantee in conjunction with a shareholders agreement can provide additional security and assurance to the other shareholders in a Joint Venture Company. It is important to carefully read and understand the terms and conditions of the guarantee before using it to ensure that all parties are aware of their obligations and liabilities.



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