Beneficiary and Guarantee company: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
Line 1: Line 1:
1.
''Company law - limited liability - guarantee.''


A person or company to whom money is paid. Also known as a payee.
In a guarantee company the liability of the members is restricted to a predefined amount which the members guarantee to contribute (on the event of any winding up of the company).


This type of company is also known as a ''company limited by guarantee''.


2.
The members of the company are known as guarantors.


The party that is named by the grantor, settler or creator of a trust and is entitled, according to the terms in the respective trust deed, the benefit from the revenues of the trust.
 
Guarantee companies are most often used for charitable purposes, or other not for profit purposes.
 
For commercial activities, companies ''limited by shares'' are generally a more convenient choice.
 
 
Guarantee companies are technically owned by the guarantors.
 
However, in the usual cases where the company is a charity or not for profit undertaking, the guarantors would not be seeking any personal benefit from their ownership.




== See also ==
== See also ==
* [[Beneficial owner]]
* [[Bankruptcy]]
* [[Deduct from beneficiary]]
* [[Charitable status]]
* [[Trust]]
* [[Companies registry]]
* [[Company]]
* [[Guarantee]]
* [[Guarantor]]
* [[Limited company]]
* [[Limited liability]]
* [[Not-for-profit]]
* [[Public limited company]]
* [[Unlimited company]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 23:44, 11 July 2021

Company law - limited liability - guarantee.

In a guarantee company the liability of the members is restricted to a predefined amount which the members guarantee to contribute (on the event of any winding up of the company).

This type of company is also known as a company limited by guarantee.

The members of the company are known as guarantors.


Guarantee companies are most often used for charitable purposes, or other not for profit purposes.

For commercial activities, companies limited by shares are generally a more convenient choice.


Guarantee companies are technically owned by the guarantors.

However, in the usual cases where the company is a charity or not for profit undertaking, the guarantors would not be seeking any personal benefit from their ownership.


See also