What is the difference between a company limited by guarantee and an incorporated trustee?
A company limited by guarantee and an incorporated trustee are usually established for the purpose of promoting an objective.
The major difference between the two is COMMERCE.
Although both a company limited by guarantee and an incorporated trustee are non-profit entities. A company limited by guarantee can make profit provided such profit is solely used for the advancement of its objectives. This means that a company limited by guarantee can go into commerce (business) but the restriction is that the profit gotten will only be for the promotion of its objective.
In a company limited by guarantee, the guarantor’s financial liability is limited only to the amount that they guarantee in the company as against incorporated trustees who can be used in their individual capacity as trustees.
Team 618 Bees
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