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Parental Guarantee to other parties in relation to Shareholders Agreement

Guaranteed Shareholders

Protect your interests with our Joint Venture/Shareholders Agreement. Get a guarantee from a party's parent for their obligations in favour of the Guaranteed Shareholders. Drafted in a neutral form.

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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

The document titled 'Parental Guarantee to other parties in relation to Shareholders Agreement' is a guarantee entered into for the benefit of the parties to the shareholders' agreement. The guarantee is made by the guarantor, who is referred to as Party 1, in consideration of the other shareholders entering into the agreement. The guarantee ensures the proper and punctual performance of all obligations, commitments, and undertakings by Party 1 under the agreement. It also provides indemnification to the company and the other shareholders against any loss, damages, costs, and expenses resulting from any failure of Party 1 or the guarantor to perform the obligations. The guarantor's liability under this guarantee remains in force regardless of any act, omission, neglect, event, or matter. The guarantee can be demanded by the company or any other shareholder at any time. The obligations of the guarantor are continuing and extend to all obligations of Party 1. The guarantor agrees to indemnify the company and the other shareholders on demand against any losses, actions, claims, proceedings, liabilities, expenditure, or costs if any amounts under the agreement are not recoverable or the guaranteed obligations are not enforceable. The guarantor waives the right to require the company or the other shareholders to proceed against the party or any other person and agrees not to claim in competition with the guarantor in any liquidation, administration, receivership, or winding-up. The guarantor also agrees to do or execute any further assurances and documents required by law or considered necessary by the company or the other shareholders. If any provision of this guarantee becomes invalid, illegal, or unenforceable, the remaining provisions shall remain valid and enforceable. The guarantee is binding on the parties and their successors and assigns.

How to use this document?

To use this document, follow the steps below:


1. Read and understand the shareholders' agreement: Familiarize yourself with the contents of the shareholders' agreement that this guarantee is related to.

2. Identify the parties: Determine the names and addresses of the parties involved, including Party 1 (the guarantor) and the other shareholders.

3. Ensure receipt of the agreement: Confirm that Party 1 has received a copy of the shareholders' agreement.

4. Understand the obligations: Understand the obligations, commitments, and undertakings that Party 1 is guaranteeing under the agreement.

5. Perform obligations punctually: Ensure that Party 1 performs all obligations under the agreement in a proper and punctual manner.

6. Indemnify the company and other shareholders: Hold the company and the other shareholders fully and completely indemnified against any loss, damages, costs, and expenses resulting from any failure of Party 1 or the guarantor to perform the guaranteed obligations.

7. Demand performance: If Party 1 fails to perform any obligations, commitments, or undertakings under the agreement, demand that the guarantor performs or procures the performance of such obligations.

8. Satisfy obligations: Upon demand, the guarantor should unconditionally perform or procure the performance of the obligations in the manner prescribed in the agreement.

9. Enforce indemnification: If any amounts under the agreement are not recoverable or the guaranteed obligations are not enforceable, the guarantor should indemnify the company and the other shareholders on demand.

10. Notify address changes: Notify the other party of any changes to the address, addressee, or contact details.

11. Serve notices: Serve any notices required under the guarantee in writing, either by hand, email, fax, or post, in accordance with the specified addresses and marked for the attention of the relevant party.

12. Comply with jurisdiction clause: Acknowledge and comply with the jurisdiction clause, which waives objections to the jurisdiction of the courts and recognizes the enforceability of judgments or orders in any jurisdiction.

13. Execute the guarantee: Ensure that the guarantee is duly executed and delivered as a deed on the specified date.


Please note that this guidance is for informational purposes only and does not constitute legal advice. It is recommended to consult with a legal professional for specific guidance related to the use of this document.

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