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Company Limited by Guarentee

Non-legal words

A company limited by guarantee is a company with no share capital: instead the members of the company pledge an amount for which they will be liable if the company is dissolved owing debts to creditors. Because there are no shares, the members cannot sell their stake in the company and they cannot receive a dividend. A company limited by guarantee is therefore a popular form of incorporation for a charity or other not-for-profit organisation.