Yuill + Kyle is a subsidiary of Morton Fraser MacRoberts LLP

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Thu 14 Jul 2022

Parent Company Guarantees

If you are trading with a subsidiary of a large parent company you should be fully aware the parent company (which may by asset/cash rich) is not responsible for its subsidiary's debts unless there is an express agreement to this effect.

If you think it appropriate and the parent company is willing to grant a guarantee in respect of the subsidiary this should be taken.

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