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Liability of the Guarantor Partner after His Withdrawal from the Company in Brazil

Published: Wednesday, August 11, 2021

In  commercial  relations, it  is  common for  creditors  to  demand  that  a  partner of  the  company be  the  guarantor of  the  company's obligations.  A  problem may  arise  when  the  guarantor partner  withdraws  from  the  company. Is  he  still  liable  for  the  company's debt?

Recently,  in  the  judgment  of  Civil  Appeal No.  1131703-72.2016.8.26.0100,  the  26th  Chamber of  Private  Law  of  the  Court  of  Appeals  of  the  State  of  São  Paulo  ("TJSP")  determined the  maintenance  of  the  liability of  the  partner who  guaranteed  the  company's  debt,  even  after  his  withdrawal, due  to  the  lack  of  extinction  of  the  guarantee or  consent  of  the  creditor to  the  substitution of  the  guarantor, subject  to  any  right  of  recourse  that  the  latter may  have  against the  debtor  and  its  current partners.  

In  this  case,  the  guarantor was  surety  in  a  lease  agreement  to  which  the  company  was  party  and  sold  his  corporate  participation before  there  was  any  default under  the  contract. On  the  sale,  the  buyers assumed  responsibility  for  all  the  company's  debts.

However,  it  is  possible  that  the  withdrawing partner  may  be  released  from  his  liability as  guarantor.  Ideally, the  contract  with  the  third  party  containing the  guarantee  should establish  conditions  for  his  replacement in  the  event  of  withdrawal of  the  guarantor partner.  In  the  absence  of  such  a  provision,  the  recommended  course of  action  is  for  the  guarantor,  together with  the  company, to  approach  the  creditor  prior  to  any  default,  informing the  latter  of  his  withdrawal from  the  company and  offering  a  substitution  of  the  guarantee. If  the  creditor refuses,  it  is  possible  to  obtain  an  exoneration  of  liability  by  means  of  a  lawsuit, demonstrating  the  guarantor's good  faith  and  that  the  reason  for  granting  the  guarantee  no  longer  exists. 

Lucas  Maia,                                     

lucasmaia@stussi-neves.com


Thiago  Stüssi LL.M.  (Berlin),

thiagostussi@stussi-neves.com

Gustavo Stüssi Neves
Stüssi-Neves Advogados
Country:
Brazil
Practice Area:
M&A
Phone Number:
+55 11 3093-6612
Fax:
+55 11 3097-9130
STÜSSI-NEVES ADVOGADOS was founded in 1977. Our staff is currently comprised of professionals (partners, associates and consultants) allocated in offices in São Paulo and in Rio de Janeiro. Our clients are mainly Foreign companies with Brazilian subsidiaries, companies willing to start operating in Brazil or companies willing to or already doing business with Brazil.

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