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Parental Guarantee to other parties in relation to Shareholders Agreement


In relation to a Joint Venture / Shareholders Agreement, a guarantee is given by a party's parent to the other shareholders for the party's obligations. This is drafted in favour of the Guarantor.

In consideration of the Other Shareholders entering into the Agreement the Guarantor (as principal obligor and not merely as a surety) unconditionally and irrevocably as a continuing obligation:

(a) guarantees the proper and punctual performance by the Party (while the Party is a Shareholder) of all of its obligations, commitments and undertakings under or pursuant to the Agreement; and

(b) undertakes to hold the Other Shareholders fully and completely indemnified against any loss, damages, costs and expenses occasioned by any failure of the Party or the Guarantor to perform any of the obligations referred to in paragraph (a) above.

How to use this Document?

This guarantee should be carefully read by the shareholders and guarantor involved.

This guarantee may be used when the parties enter into a shareholders agreement with the parent of one shareholder guaranteeing the obligations to the other shareholders upon the establishment of a Joint Venture Company. 

The guarantor should sign and return a copy, and once signed, all parties should get a copy.

To avoid any future disputes, the guarantor should have its signature witnessed. This guarantee cannot be revoked by the guarantor.

How to Tailor the Document for Your Need?

1. Click the “Create Document” button and fill in the details of the parties. You can click the “Fill with Member’s Information” button to complete the party’s information with your personal or business information saved to your account.

2. Please fill in any additional information by following the step-by-step guide on the left-hand side of the preview document and click the “Next” button.

3. When you are done, click the “Get Document” button and you can download the document in Word or PDF format.

4. Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document. Each party should have a copy of the executed document.

parental guarantee
joint venture

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