Companies limited by guarantee


Published by a ³ÉÈËÓ°Òô Corporate expert
Practice notes

Companies limited by guarantee


Published by a ³ÉÈËÓ°Òô Corporate expert

Practice notes
imgtext

A Company limited by guarantee is a type of company with Members who have undertaken to contribute to the assets of the company in the event of its being wound up. This Practice Note summarises the main features of a company limited by guarantee and why a guarantee company might be used as a vehicle to carry on a business as opposed to a company limited by Shares.

What is a company limited by guarantee?

Limited companies can be either limited by shares or by guarantee. A company limited by guarantee is a type of company whose members have undertaken to contribute to the assets of the company in the event of it being wound up. It is not possible for a company limited by guarantee to be a public company.

Most companies limited by guarantee do not have shares because since 22 December 1980 (1 July 1983 in Northern Ireland), it has not been possible to form a company limited by guarantee with a Share Capital. Companies limited by guarantee with a share capital can be public or private

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Company limited by guarantee definition
What does Company limited by guarantee mean?

A company limited by guarantee is a company whereby the liability of the members is limited to such amount as the members undertake to contribute to the assets of the company in the event of its being wound up.

Read more

Popular documents

Unlimited companies

Unlimited companiesWhat is an unlimited company?An unlimited company is a private company whose members are not limited in their liability to contribute to the obligations of the company on winding up. An unlimited company cannot be a public company.An unlimited company may or may not have a share

Unincorporated associations

Unincorporated associationsWhat is an unincorporated association?An unincorporated association:•is an organisation formed when two or more persons (the members) carry on activities together for a common purpose•does not operate for the purpose of generating profit (in fact, if two or more persons

Overseas companies with an establishment in the UK

Overseas companies with an establishment in the UKWhen an overseas company opens an establishment which carries on business in the United Kingdom, it may have to register its particulars with Companies House pursuant to the provisions of the Companies Act 2006 (CA 2006) and the Overseas Companies

Unregistered companies

Unregistered companiesWhat is an unregistered company?An unregistered company is a rare form of incorporated company that is not formed or registered under the Companies Act 2006 (CA 2006) or under any other public general Act of Parliament. Unregistered companies include companies formed under