Company limited by guarantee

A Company limited by guarantee is like a Limited (which is often called company limited by shares). In a limited, there are shares, and each shareholder is responsible to take liabilities up to the amount of the share, if the company goes bankrupt. In a company limitted by guarantee, each member gives a guarantee, to take liabilities up to a certain amount. Very often, companies that are not profit-oriented use this structure. Two examples of such companies are PGA European Tour, which organises golf tournaments, and Oxfam, which distributes aid.

The company limited by guarantee exists in Englad, Sctoland, Wales, Ireland, and many other Commonwealth countries.