How is a company limited by guarantee?

How is a company limited by guarantee?

March 25, 2019

A company limited by guarantee is a company which does not have any shares or shareholders but is owned by guarantors who agree to pay a certain amount of money for company debts and the operation of the company. Where profits are made same does not go back to the guarantors it reverts to the operation of the company.

A company limited by guarantee is most times incorporated by non-profit organisations such as sports clubs, workers’ co-operatives and membership organisations, whose owners wish to have the benefit of limited financial liability instead of an NGO.

A company limited by guarantee is a distinct legal entity from its owners, and is responsible for its own debts and like the limited liability company structure, the personal finances of the company’s guarantors are protected. They will only be responsible for paying company debts up to the amount of their guarantees.

Read up blog post on How to register a company limited by guarantee.

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Lucklyn Audu

Team 618bees

 

For Further inquiries;

www.618bees.com

info.618bees.com

012803791

 

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Frequently Asked

  • Why must I file Annual Returns?

    It is a mandatory statutory requirement under the Companies and Allied Matters Act to file Annual Returns yearly. 

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    A trademark can be any word, sign, symbol or graphic that you apply to your company, goods or services to distinguish them from those of your competitors; for example, a brand, product or company name, or logo. The trademark serves as a badge of origin for your business and its brands and products, and can consist of words, logos, slogans, colours and shapes, or a combination of all of these.

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