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Company No. 10 cm15 cm APPENDIX A COMPANIES ACT 2016 Section 45 APPLICATION COMPANY LIMITED BY GUARANTEE (CLBG) FOR MINISTER APPROVAL (Company Name) SECTION A: PURPOSE OF APPLICATION APPLICATION TO.

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The main reason to set up a company limited by guarantee is to provide financial protection to people who run a charity, community project, or some other form of non-profit venture. By operating through a company, members have limited personal liability for the debts of the enterprise.

Example: Most private and public are limited by shares and its the most popular form of business in India. Companies like Reliance, Infosys and Tata are all public companies limited by shares. Facebook and Google operate in India with shares, however, they have been incorporated as private entities.

Disadvantages of the company limited by guarantee form A potential disadvantage to companies limited by guarantee is that they can experience difficulties with financing. It has no share capital to give it a working capital, so it may rely upon debt finance to run its business.

A company limited by guarantee is a distinct legal entity from its owners and is responsible for its own debts. The personal finances of the company's guarantors are protected. They will only be responsible for paying company debts up to the amount of their guarantees.

1. A company limited by guarantee (CLBG) is a public company incorporated with the principal liability of its members limited by the constitution to such amount as the members undertake to contribute to the assets of the company if the company is wound up.

Company limited by guarantee not having a share capital Non-profit organizations or charitable institutes, for example, are funded by public donations or government grants. The guarantee determines voting power in these companies.

Forming a company limited by guarantee means: The company is a separate legal entity from its members and their liability for its debts is limited. Each member will only be responsible for paying the company's debts up to the limit of their guaranty.

One example of a guarantee company is Cricket Australia, the central administrative body for cricket in the nation. Cricket Australia's full name is Cricket Australia (Company Limited by Guarantee).

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232