RichieRuin
Registered User
- Messages
- 27
I set up a limited company a year ago and engaged an accountant to help with registration etc. Now she's doing my accounts and she has asked me to sign a personal guarantee and indemnity to say that if for any reason my company cannot pay her fees, I will personally pay them. There is also other stuff about holding harmless and indemnifying the accountant against any liability blah blah blah -- isn't that what professional indemnity insurance is for?
I'm not overly bothered by it because the cost should not be much (I've done all the donkey work - receipts, VAT, etc.) and the company is solvent but I never heard of this before and I'm just wondering if it's standard procedure to ask for it. Isn't the whole point of a limited company that it's a separate legal entity and the directors are not personally liable for its debts?
On a side note, I'm also a bit ticked off about the way the accountant handled it -- it just came in the post without any explanation, just a compliments slip saying "please sign and return".
Should I just sign it and say nothing? Or refuse? Ignore? Get another accountant? She hasn't had to do much for me so far but what she has done has been on the ball to be fair.
I'm not overly bothered by it because the cost should not be much (I've done all the donkey work - receipts, VAT, etc.) and the company is solvent but I never heard of this before and I'm just wondering if it's standard procedure to ask for it. Isn't the whole point of a limited company that it's a separate legal entity and the directors are not personally liable for its debts?
On a side note, I'm also a bit ticked off about the way the accountant handled it -- it just came in the post without any explanation, just a compliments slip saying "please sign and return".
Should I just sign it and say nothing? Or refuse? Ignore? Get another accountant? She hasn't had to do much for me so far but what she has done has been on the ball to be fair.