Aims and Objects for
Company limited by guarantee
To register a company limited by guarantee the AIMS or OBJECTS must be stated in the company’s constitution (Memorandum & Articles of Association) and a statement must be made about how ‘profits’ will be used. Your aims will be different from anyone else’s but these examples will help your thinking. Take a sheet of paper and write down what you intend to do and how it will benefit the community. Then try to summarise your notes into a few crisp statements.
A sports club
a. To promote the sport of ….
A political organisation serving an ethnic group
a. To recruit new members for ….
A music festival
a. To promote the awareness and appreciation of …… and associated music from around the world.
A community based service for the unemployed
a. To provide training for unemployed people, initially but not exclusively, within the …… area.
A residents’ association
a. To manage, repair, maintain and insure against all risks the property known as …. situated at …. in the county of …. (the property) for the benefit of the leaseholders of …. In carrying out the above to be mindful of the interests of the freeholder and occupiers other then the leaseholders but where the interests of the parties may be in conflict the interests of the leaseholders will always take precedence.
b. To employ contractors, subcontractors and professional advisors as necessary to assist with or carry out the company’s objectives.
c. Where the leases of the leaseholders show that any repair, renewal or maintenance of whatsoever nature is the responsibility of the freeholder to pursue the freeholder to ensure that the obligations contained in the leases are complied with promptly and at the cost of the freeholder.
d. To secure monthly contributions from the leaseholders sufficient to cover all the costs envisaged in these objects. Each separate apartment will submit the same total monthly contribution. Where a leaseholder has sublet an apartment or part thereof the leaseholder may arrange for the occupant to make contribution but the leaseholder retains the primary responsibility for making the contribution or making good any shortfall. The company will not aim to make a profit from its operations but will endeavour to set aside such reasonable sums, as the members consider necessary to make contingencies. The management company may annually review and revise contributions made by the leaseholders.
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These examples provide a tiny selection of the diversity that is covered by not-for-profit organisations. There are countless ways that people work (and play) together in clubs, societies, networking groups etc. But, in an increasingly litigious society, many are seeking to protect their group by obtaining limited liability through registering it as a guarantee company.
Information and procedures for registering a traditional trustee company for a not-for-profit organisation not seeking charity registration.
Information and ordering procedures for registering a Community Interest Company (CIC).
Information and procedures for registering a limited liability company using a constitution suitable for subsequent charity registration.
Standard limited companies for normal business activities
"Dedication of funds"
A company limited by guarantee defines its not-for-profit status by stating in its constitution what will happen with any money that remains in the company on dissolution. This is stated in general terms as follows:
Ordered Management will help you
We specialise in this business, so don’t be discouraged if you find it hard to put the words together. Tell us in plain English what you intend to do and we’ll help you create the wording for your Aims etc.