High Quality Content by WIKIPEDIA articles! In British and Irish company law, a private company limited by guarantee is an alternative type of corporation used primarily for non-profit organisations that require legal personality. A guarantee company does not usually have a share capital or shareholders, but instead has members who act as guarantors. The guarantors give an undertaking to contribute a nominal amount (typically very small) in the event of the winding up of the company. It is often believed that it cannot distribute its profits to its members but (depending on the provisions of the articles) this is not actually true. However a company limited by guarantee that distributes its profits to members would not be eligible for charitable status. Until 1981, it was possible in the United Kingdom to form a guarantee company with share capital. Like a private company limited by shares, a company limited by guarantee must include the suffix "Limited" in its name, except in circumstances specifically excluded by law.

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