According to the second paragraph of Article 9 of the Judicial Interpretation of Guarantee System, in the case that the guarantee contract is invalid, the guarantor will not only bear the guarantee responsibility, but also bear any other compensation (fault) responsibility. In this case, creditors should be more cautious about the guarantees provided by overseas listed companies.
Due to the great uncertainty of judicial institutions about whether overseas listed companies are determined by Article 9 of the Judicial Interpretation of Guarantee System, if the guarantor is an overseas listed company, it is suggested that the guarantor should require the overseas listed company as the guarantor to publicly disclose the guarantee matters through the resolution of the internal resolution organ.
Introduction to the guarantee of listed companies in Hong Kong;
The guarantor shall require the listed company to make a supplementary announcement. According to the relevant provisions of administrative regulations and exchange rules, listed companies are obliged to disclose the guarantee in time after the internal resolution body approves the guarantee. Secondly, if the listed company cannot make a supplementary announcement (or there are substantial obstacles to the supplementary announcement).
Creditors should review the complete set of transaction documents signed before, including the guarantee contract (and cooperation agreement), and pay special attention to the fact that the guarantor's commitment to provide guarantee in the transaction documents has been resolved internally and should be announced in accordance with the disclosure requirements.