Hi, I am learning about Guarantors and Guarantee contracts in my Business Law class. In the text, it says that the contract has to describe the benefit that the guarantees will receive. What would be the benefit in a shareholder giving up their limited liability protection? What is the incentive?

Also, in regards to "Subrogation," if this means that the guarantor has the right to recover from the debtor any payments to the creditor, how is that possible if the debtor is the one who could not make the payment to the creditor in the first place? How would the guarantor receive any money from the debtor?

Thank you!