Obligations under company law

Hi all,

The company that I'm about to incorporate with my business partner is about to sign a long term lease on a city centre property..

I remember from my college days something about "specific performance" in relation to the rent / lease payments.

Basically, what I'm asking is , that is things go pear-shaped, and we decide to wind up the business / company,
Are the directors liable personally for the rent etc in the unit?, or could the company be pursed for the rent payments etc, (There is only one break clause in the agreement (year 10))

Not sure if I'm conveying my issue correctly here but hopefully the above makes sense!

Any help would be great, thanks,

Edward

Are the directors liable personally for the rent etc in the unit?,

Not unless you give a personal guarantee which you should resist but which landlord is likley to insist on.

or could the company be pursed for the rent payments etc, (There is only one break clause in the agreement (year 10))

Yes.

Would it not be better to take a shorter term lease just to see how things pan out? If the business does well, then the next lease may be a longer lease on a bigger space. And if things don't work out, you've restricted your exposure.

There are pro's and con's with taking on long leasehold interests. It is worth while weighing it all up and talking to your solicitor before signing up.

mf