Liability Company Online With Guarantee Without Share Capital
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FAQ
A guarantee company is a type of corporation designed to protect members from liability. Guarantee companies often form when non-profit organizations wish to attain corporate status. If the guarantee company having share capital, the liability of share holders is guarantee plus the unpaid value of shares.
No share capital A guarantee company can borrow money and may issue debentures or debenture (loan) stock. As there are no shareholders, it is not possible to own a company limited by guarantee in the way that a company with a share capital is owned by its shareholders.
One of the key differences is that members of a company limited by guarantee do not have to make any financial contribution to the company (unless the company ceases to operate as a going concern). With a company by shares, a shareholder will usually have to pay full market price for the shares they are buying.