Corporate Guarantee and Indemnity
Corporate Guarantees and Indemnities
Understand what the guarantee actually commits the company to before it is signed — because guarantees are enforced on their wording, not on their intention.
- Advocates & Solicitors
- Offices in Kuala Lumpur & Johor Bahru
- Confidential, no obligation
Real lawyers, one team behind every matter
Who this is for
Sound familiar?
Holding companies guaranteeing subsidiary obligations
Companies asked to guarantee a supplier, landlord or financing arrangement
Directors approving a guarantee and needing the exposure quantified
Businesses seeking release of a guarantee after a sale or refinancing
Parties negotiating the scope of a guarantee demanded by a counterparty
What's at stake
What is really at stake
- 01A guarantee is signed to get a subsidiary a facility, or to support a supplier relationship, or because the bank asked.It feels contingent, and the assumption is that it only bites if things go badly wrong.
- 02The wording usually says otherwise.Continuing security covering all present and future liabilities. Payable on demand without the lender first pursuing the borrower. Unaffected by variations to the underlying facility the guarantor never sees.
- 03The obligation is often far wider and far more immediate than anyone at board level understood when it was approved.
In plain words
Corporate Guarantee and Indemnity
Advisory and drafting for corporate guarantees, indemnities, letters of comfort and support arrangements — the scope and duration of the obligation, whether it is primary or secondary, limits and caps, the effect of variations to the underlying obligation, and release and discharge.
What good looks like
Imagine a board approving a guarantee with a clear note of the maximum exposure, the trigger, the duration and the release conditions. The obligation is understood, capped where possible, and reviewed as circumstances change.
What you get
What we deliver
Scope and fee are agreed in writing before any work starts, so you know exactly what you are getting.
- 01
Analysis of the proposed guarantee and exposure quantified
- 02
Advice on scope, duration and whether the obligation is primary
- 03
Caps, limits and variation protections drafted or reviewed
- 04
Board approval documentation and record
- 05
Release and discharge on repayment, sale or refinancing
How we work
Clear from the first conversation
- 1
Send a short request
Tell us what the matter is about. It takes under a minute and stays confidential.
- 2
Akmal sets a time with you
We reply within 30 minutes in office hours to arrange your consultation, online or at our KL or JB office.
- 3
Advice, then a written proposal
You get a clear view of the issues and options, then a written scope and fee proposal.
- 4
Work begins on the agreed scope
Akmal leads the matter with a team of our lawyers, working to the scope you approved. You get regular updates at every key step.
Who leads your matter
Led by Akmal Saufi, supported by our team
Akmal leads your matter as Partner. Depending on the work, other lawyers in our team handle parts of it day to day, with Akmal overseeing the matter.
Akmal Saufi
Partner, Messrs Akmal Saufi & Co
- Advocate & Solicitor, Malaysia
- Over 13 years in transactional work: M&A, joint ventures, land and infrastructure
- LLB (Hons), International Islamic University Malaysia
The team behind your matter
Meet the team →Who we have acted for
Organisations we have acted for
Federal government agencies & statutory bodies
Johor state bodies & local authorities
Government-linked companies
Private sector & NGOs
Shown with permission. Government agencies, statutory bodies and government-linked companies are identified as such. Their inclusion does not imply endorsement by any government, ministry or agency.
Next step
Request a consultation with Akmal
- 1Send a short request. It takes under a minute.
- 2Akmal reviews it and arranges a time with you.
- 3You get clear advice, then a written scope and fee proposal.
We reply within 30 minutes · Mon–Fri, 8:30am–5:30pm
Your details stay confidential. Sending a request does not mean you have appointed us.
- Licensed advocates & solicitors
- Professional indemnity insured
- Offices in KL & JB
Questions
Frequently asked questions
Still unsure? Send a short request and Akmal will tell you plainly whether and how we can help.
What is the difference between a guarantee and an indemnity?
Can a guarantee be capped?
Does a variation to the loan release the guarantor?
How do we get a guarantee released after selling a subsidiary?
Is board approval required?
What is Legal That Works?
What if I’m not sure what legal service I need?
Who will be helping me?
Before you sign
The cost of waiting
Guarantees are negotiable before signature and enforced afterwards on their exact wording. There is no equitable adjustment for what the board assumed.
We reply within 30 minutes · Mon–Fri, 8:30am–5:30pm
