Bank may only consider releasing a guarantor provided a replacement is made. This is very common when a partner or shareholder disposed off his entire shares to a 3rd party. The banks will only consider the new replacement provided the party who purchase the shares has better social position and stronger financial standing than the exiting guarantor. In real life, this is not an easy task and time consuming.One of my client has a bad experience with a bank when he found a buyer for his shares in the company and has written to bank to seek consent for replacement before they transact. He has also provided the I/C and financial statements of the buyer for bank's evaluation. He was then informed by the officer that the bank is unable to process the request as they have not sign the shares transfer form. My client then executed all the forms (Form 32A & resignation as director) without the money changing hand. Today he is in a dilemma as the bank is holding on to his application.
