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FAQ

What do people mean by outsourcing legal services?

Outsourcing legal services is a cost effective way for private and voluntary sector organisations to manage their compliance issues, contract and property matters.

Dealing with routine or volume legal matters can consume resources which could be invested elsewhere. We can provide cost-effective products, using streamlined processes and dedicated teams.

Company secretarial

We provide cost effective and high quality company secretarial services to UK registered companies ranging from start-ups to international groups of companies. Read more about company secretarial services.

Academies company secretarial

We provide an efficient and practical service to ensure full compliance with the regulatory requirements of company law which apply to company secretaries. Read more about academies company secretarial services.

 

Company Law Compliance

Data Protection Complaince

Health and Safety Law Compliance

Contract Management

Property Management

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I want to know what range of services you provide for businesses.

We offer a full range of services to support all aspects of your organisation. We can advise you in all areas of law, just come and talkto us.

  • commercial contracts
  • commercial dispute resolution
  • competition
  • corporate law & governance
  • data protection
  • employment
  • environmental law
  • freedom of information
  • health & safety
  • immigration
  • intellectual property
  • information technology
  • licensing
  • outsourcing
  • private finance initiative, public private partnerships & projects
  • procurement
  • property
  • property development
  • property dispute resolution
  • probate litigation
  • regulatory
  • trusts, wills & estates


What is a Company Limited by Guarantee?

The limited by guarantee structure is most useful for an organisation where:

  • it is not appropriate for a limited number of shareholders to have controlling power; or
  • where it may not be convenient constantly to be transferring and recording changes of share ownership; or
  • where the organisation is not one where it is appropriate for its members personally to own any share in the assets of the organisation.

Charitable, voluntary, social and other types of non-profit organisation frequently  set up as companies limited by guarantee. 

Setting up a company limited by guarantee means that the members generally set a very low limit on their personal liability.That means that where the company runs into difficulties their private assets are fully protected. If the company goes into liquidation or gets sued, then the maximum sum they could be asked to pay would be the amount of the guarantee.

A company limited by guarantee is regulated by the Companies Acts of 1985 and 2006. Its legal framework means that grant giving bodies may be more likely to provide funds to it than they would be to an unincorporated association.

Liability limit will be specified in the memorandum & articles of association of the company and often this can be as little as £1.

Some of its main advantages are:

  • Members' liability is set at a pre-agreed (usually low) amount;
  • Company is a separate legal entity from its members;
  • Company can own property in its own name;
  • Company can employ staff;
  • Company can engage in contracts;
  • Can attract funding from certain types of organisation;
  • Organised in a democratic manner for the good of the company.


How Does It Differ From A Company Limited By Shares?

Since there are no shareholders and no shares in a company limited by guarantee, a profit cannot be distributed to its members in the form of dividends. Any profit is retained to be used for the purposes, objectives and policies for which the company exists.

For example, if a company was set up to raise funds for cancer research then any profits generated by the company must be used for that purpose.

Most companies have too many members for all of them to share practical day to day management. They therefore appoint some of their number to manage the company.

The members of a company limited by guarantee have periodic meetings, just like the members of a company with shares. Those meetings are where the most important decisions are made.

The structure of management, policy-making and decision making are set out in the articles of association, which can be changed if change is necessary.

In Brief

Organisations which might benefit from setting up as a company limited by guarantee include:

  • Charities;
  • Voluntary Bodies;
  • Social Enterprises;
  • Trade Associations;
  • Societies;
  • Clubs;
  • Professional Associations;
  • Student Unions.

If you are thinking about setting up such an organisation, we can help.


FAQ

Testimonials

 We were very impressed with the service we received. All staff were very friendly and helpful. They did not tire of my constant phone calls! 

Mrs L Carnegie, Conveyancing Client

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