Title - Private company limited by guarantee Tags - businessstructure
Instead of shareholders, a company limited by guarantee (CLG) has members who act as guarantors of the company’s liabilities. Each member agrees to contribute an amount specified in the articles of association (usually very small) in the event of insolvency or a winding up of the company. A CLG can distrubte profit to its members, but only if allowed by its articles, and at the expense of making itself ineligible for charitable status.