Talk:Private company limited by guarantee
|WikiProject Business||(Rated Start-class, Mid-importance)|
|WikiProject Law||(Rated Start-class, Low-importance)|
Mr. Gorbachev, tear down that flag!
The flag should be removed, because the area of company law in question deals specifically with the UK and Ireland. It can't represent a worldwide view because UK and Ireland company law do not have worldwide jurisdiction. Misterdoe 07:49, 20 February 2007 (UTC)
Yes, I'd wondered that, too. Do other countries with an English-influenced legal system - e.g. Commonwealth countries - not have CLGs?TobyJ 17:32, 21 February 2007 (UTC)
- Australia has them - see Corporations Act s112(1) I'll change the 1st sentence to include Australia, but I don't know enough about it to fix the whole article Pacey 00:49, 7 March 2007 (UTC)
Source of text
I'm concerned that some or all of this text is copied from somewhere. This seems to be implied by the last sentence of the introduction: "However, RTM companies and commonhold associations which are incorporated under the Companies Act and the information in this booklet generally applies to them." (emphasis added).
- It seems to be a a very lightly edited version of parts of this page from Companies House. I'd say that it's nowhere near different enough to avoid being a copyvio. 126.96.36.199 03:24, 25 February 2007 (UTC)
I've tagged as dubious the statement that companies limited by guarantee are not permitted to distribute profit and are hence allowed to register as charities. I have two reasons for this:
- As far as I'm aware, there is no such prohibition, and what sources I have available tend to back me up on this. See, for instance Hannigan, B. (2003). Company Law. Oxford University Press. ISBN 9780406913562., which states "While there is no prohibition on trading by companies limited by guarantee, such companies are predominantly found in the not-for-profit sector". I acknowledge that there has been new legislation since the publication of this book, but my reading of it suggests there has been no change in the status of CLGs. Section 37 strongly implies that profit distribution is acceptable for CLGs, also.
- I'm not aware of any prohibition on a company limited by share registering as a charity, either.
Thinking about it. I'm going to replace the statement with reference to the book above. If anyone knows of a more recent authoritative source that contradicts this, please revert me. 188.8.131.52 (talk) 20:25, 19 January 2008 (UTC)
"It is not believed that it cannot distribute its profits to its members but this is not actually true." This is a very clumsy sentence. —Preceding unsigned comment added by 184.108.40.206 (talk) 13:27, 10 January 2009 (UTC)
i have a limited company by guarantee, registered in cardiff at companies house.., we operate membership services, many of which are fee based, we reinvest any profits in the company, we also pay out much of our income to our members... we are a non profit organisation, under uk law, non profit companies limited by guarantee cannot any longer register as charities. we are welcome instead to pay up to apply to a department in companies house to change our designation and name to register as non profit. — Preceding unsigned comment added by 220.127.116.11 (talk) 00:54, 1 July 2012 (UTC)
Article contains these two lines:
> Until 1981, it was possible in the United Kingdom to form a company limited by guarantee with share capital.
> Under section 5 of the Companies Act 2006, new companies cannot be formed as a company limited by guarantee with a share capital.