Do companies limited by guarantee have shareholders?


Hi - I am part of a group that is looking into forming a drama society in east London. As it will be a non-profit, we are obviously thinking of a limited by guarantee company so that everybody’s finances will be protected. I am already a shareholder in two companies, so this isn’t a big step for me, but I’ve never been part of a limited by guarantee company before. Does anyone know whether the shareholder system works the same with limited by guarantee companies? Or do they have something different than shareholders?




Limited by guarantee companies do not have shareholders because this type of company has no share structure. In place of shareholders, you have guarantors. They are the owners of the company and they must each guarantee a fixed sum of money to the company in the event of its insolvency.

You need at least one guarantor to register a company limited by guarantee. Most guarantors do not receive any income for their involvement because this type of company is normally set up for non-profit purposes.

2 years ago

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