company limited by guarantee

Hi,

My father is looking to set-up a not for profit organisation. We assume this would be a "company limited by guarantee" rather than a standard limited liability company. Who are the people that have to be involved in this type of organisations. From what I have read, there is a board of directors and "members" rather than shareholders.

So, is there a minimum number of people that have to be on the board; is a company secreatary needed; how many members does there have to be; can the director be a member, etc?

Or would it be more suitable to create a standard limited company?

TIA.

Reply to
No-one
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Does the organisation have to be a company at all? Can't it just be an association?

Reply to
Ronald Raygun

In message , No-one writes

What do you mean by a 'not for profit' organisation? Is it going to be a charity? If this is the case then you dont need a Limited Company at all. Have a look at

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If it isnt a charity then the status of being limited by guarantee or limited by issued shares or even if it is just a club, it will still be subject to either Corporation or Income Tax. Being Limited by guarantee gives no special status in this regard.

Perhaps you could tell us what the object of the organisation will be?

Reply to
john boyle

The ones with which I have been involved had a company secretary and a Council, which was effectively the Board of Directors.

The members' liability is usually limited to £1 each in the event that the company is dissolved. The Council is drawn from Members or their representatives or nominees.

I believe that you can also go down the Friendly Society route.

Reply to
Terry Harper

In message of Fri, 3 Jun 2005, john boyle writes

Not necessarily.

The one's I've been involved with have been management companies for a block of flats. The members being the lease-holders for the time being with limited liability of £1.

There is no Corporation Tax involved as you tick the appropriate box on the CT Return and that's it. There is no Corporation Tax when the company only trades (as it were) with its members (internal trading).

DF

Reply to
David Floyd

basically correct but you still have to pay CT on interest received (unless they have changed this)

tim

Reply to
tim (moved to sweden)

In message of Tue, 7 Jun 2005, tim (moved to sweden) writes

Yes!

DF

Reply to
David Floyd

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