(a)Mr and Mrs. L were directors of V Ltd, a company that eventually went into liquidation. When the company was set up, the couple had given personal guarantees, limited to 100,000 plus interest, in respect of the company's debts to the bank. After the liquidation, the company still owed the bank more than 100,000. When the bank sought to recover the money by calling on the guarantees, Mr and Mrs. L argued that they should not be required to pay the bank anything. They said that if the bank had given them better advice, they would have ceased trading much earlier, when V Ltd still had sufficient assets to repay all its debts in full.

Required:

Using the banker's opinion strategy, discuss the verdict

Answer rating: 100% (QA)

Here is my analysis of the case using the bankers opinion strategy As directors of the company Mr an... View the full answer