Limited By Guarantee
A Company Limited by Guarantee is a company without shareholders or shares. This type of entity is typically used by social enterprises and is controlled by members, who guarantee a nominal sum of money to the company in the event of its becoming insolvent or winding up.
Registering a Company Limited by Guarantee is easy with Kudi Konsult. Our team of legal experts and accredited CAC Consultants have helped lots of Clients register Companies Limited by Guarantee with CAC.
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FAQs On Company Limited By Guarantee
A guarantee is a fixed sum of money that a guarantor must pay when setting up the company. It serves as a form of assurance that certain conditions will be met. For example, if the company becomes insolvent or breaks a certain law, then the guarantors must pay the guarantee.
There is no maximum limit set by CAMA but it states that each member shall guarantee to pay a sum not less than 10,000 naira.
- The first process is to apply for consent for name reservation and registration of the company to the registrar of the Corporate Affairs Commission. Under this, you would need to submit the two proposed names, directors and secretary of the company, objectives of the company, amount members guarantee to pay in the event of winding up.
- Application to the Attorney General of the Federation for authorization to register the company within 30 days. The AG shall approve where there are no objections or where there is no reasonable cause to refuse the application, and where no decision is made within 30 days, the promoters shall – Place an advertisement in 3 daily National Newspaper for 28 days inviting the public to object if any.
- Approval by the Commission.
Yes, a director of the company can be a guarantor as well but it is not mandatory for a guarantor to be a director.
No, this is impossible as CAMA states that upon winding up of the company, the remaining assets shall be transferred to a company with similar objects.