A motion will be put before the EGM to incorporate YesCymru as a Company Limited by Guarantee
What is a Company Limited by Guarantee?
A Company Limited by Guarantee is completely different to a commercial company (limited by shares with shareholders and dividends etc.) They are normally set up under company law to run charitable enterprises, sports clubs, co-operatives and ‘not for profit’ and community organisations. Increasingly a number of grassroots campaign organisations have elected to adopt this form of governance. And for very good reasons.
Companies limited by guarantee
- Limited by guarantee companies have their own legal personality, separate from the members. This gives the members the protection of ‘limited liability’ in law, so they only have liability for the amount of their guarantee – usually £1.
- They invest any profits they generate back into the company – as opposed to distributing these as dividend payments to shareholders.
To become a Company Limited by Guarantee, Articles of Association will need to be created. More information about Articles of Association can be found here.