Protecting asset of the company from bank guarantee

Manoj (Salaried) (43 Points)

22 April 2018  

Dear All,

We are a Free Zone Company in UAE owned by 4 members, one of the member have given corporate guarantee of our company for debt taken by some other company. now that compaby is trapped in debt and I am afraid bank may approch us to invoke corporate guarantee given by us. however there are no charges/lien exist on our assets. hence I have planned below

1) To Sell assets of the company for a residual amount so the assets no more belongs to us (ONLY ON PAPERS)

2) Then to take same assets on lease/rental from the person to whome these assets are sold

3) I will be prerparing Sales Agreement/ Sales Invoice and bank transaction for money received.

4) then I will also prepare Lease/Rental agreement for taking assets on lease.

5) PLEASE NOTE THERE WILL BE NO PHYSICAL MOVEMNTS OF PLANT & MACHINES.

Plase guide me if above arrangement will help me to save properties of company, and how I can make this arranegment as full proof.