What is a public company limited by guarantee? What is the members guarantee?

Question

What is a public company limited by guarantee? What is the members guarantee?

Answer

A company limited by guarantee is a type of public company registered under the Corporations Act 2001. Like all other companies, companies limited by guarantee must comply with the applicable provisions of the Corporations Act.

These companies are formed on the principle that the liability of members is limited to the amount they agree to contribute if the company is wound up. This is known as the "Members Guarantee", and is typically nominal and set out in the company's constitution.

 

Disclaimer: You acknowledge and agree that our Services and Materials do not constitute or contain personal or general advice for the purpose of the Corporations Act 2001 (Cth) and that we, our employees and advisers do not offer any legal, accounting, tax or other professional advice or services in connection with the provision of our Services and any Materials.

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request