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UK & Offshore Company Formation Agents
+44(0)845 467 1203 uk@pipitup.com
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Company Limited by Guarantee
£60.00
Includes Incorporation Certificate & Memorandum
and Articles of Association
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Guarantee companies usually include clubs, membership organisations, sports associations and charities.A
company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations such as :
- Clubs
- membership organisations, including students' unions
- sports associations
- workers'
co-operatives
- other social enterprises
- charities
A guarantee company does not have shares. The members of the company do not
own the company but are the decision makers for the company. This means that the profits of the company cannot be distributed
to the members through dividends and that they do not have any claim upon the assets of the company. The members of the company
may appoint Directors often called 'Trustees', who are given the responsibility for creating and implementing policies
for the company.
Companies limited by guarantee also have a list of predetermined ‘objects’ stipulated
in their Memorandum of Association, the objects define what the company will do and usually include a clause to restrict the
directors from paying out any profits to the trustees, but rather to reinvest any profits in fulfilling the company's
objects
A Company Limited by Guarantee
can become a Registered Charity provided that all its objects are charitable and there are no clauses within its memorandum
& Articles of Association that do not comply with Charitable Law. The Office of the Scottish Charity Regulator (OSCR)
will require you to submit a number of documents, including your Memorandum & Articles of Association, so it can assess
your application for Charitable status. Likewise, a Registered Charity can become a Company Limited by Guarantee.
Pip It Up Ltd supply standard model articles accepted by companies house. If you wish to adopt your own adapted articles
please email a copy to uk@pipitup.com , examples and further advice can be obtained from http://www.charity-commission.gov.uk/
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