What Is a Company Limited By Guarantee?
Guaranty Co., Ltd., also known as Guaranty Co., Ltd. or Guaranty (Liability) Co., Ltd., its English name is Company Limited by Guarantee. In such a company, the liability of the shareholders is limited to the amount of assets they have provided to the company at the time of liquidation of the company, rather than or only to the amount of their capital contribution to the company.
Limited Liability Company
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- company name
- Limited Liability Company
- Foreign name
- Company Limited by Guarantee
- Business Scope
- guarantee
- Company Type
- Limited company
- Guaranty Co., Ltd., also known as Guaranty Co., Ltd. or Guaranty (Liability) Co., Ltd., its English name is Company Limited by Guarantee. In such a company, the liability of the shareholders is limited to the amount of assets they have provided to the company at the time of liquidation of the company, rather than or only to the amount of their capital contribution to the company.
- The limited liability of general shareholders of a limited liability company is limited by the amount of its capital contribution. The company must have capital suitable for its production and operation and assume debt liabilities with all assets. This is a typical feature of civil law countries limited liability companies. However, the above-mentioned meanings of the limited liability company and the limited liability company in the United Kingdom and Hong Kong Company Law of China are different, which can be said to be a special form of a limited liability company.
- First, shareholders' limited liability is limited to the amount of guarantees they have made
- The English company law requires that the guarantee clause in the articles of association of a company limited by guarantee must stipulate that each shareholder shall guarantee that, during the period when he is a shareholder, or within one year after he has ceased to be a shareholder, if the company is liquidated, the guarantee amount is limited Within the company, to assume the liability to pay off the company's debts.
- The second is that a guarantee liability company can have share capital (share capital) or it can be registered without share capital.
- Under normal circumstances, such companies do not need trading capital, because the purpose of establishing such companies is often non-profit, and the purpose is to promote art, charity, religion, science, sports and other activities. In addition, such companies are often funded by donations or dues from their members.
- The third is a limited liability company with share capital. Shareholders have double responsibility for the company.
- On the one hand, he will be liable to the company for the amount of capital contribution, and he will be responsible for the unpaid amount of his recognized shares;
- On the other hand, he is also responsible for paying off the company's debt within the amount of guarantees he has made. Fourth, the guaranteed amount that the shareholders have promised has the nature of reserve debt, and cannot be called until the company is liquidated; in addition, it must not be used for mortgage or pledge in the interest of corporate bond holders. Fifth, the company's organizational outline and the company's articles of association must explain the limited guarantee responsibilities of the company's shareholders for the company's debts and register in accordance with the law.