Company Limited by Guarantee (CLG)
A Company Limited by Guarantee without a Share capital (CLG) is usually used in circumstances that require a separate legal entity and corporate protection in organisations such as charities, trade associations, societies, sports clubs and social clubs. This company type is appropriate for non-profit companies or NGO’s (non-governmental organisations). They can also be used for property management purposes in the servicing and maintenance of residential associations. The legal title of a CLG must end in the suffix “Company Limited by Guarantee” or ”CLG”. However, there are some exemptions – a company can apply for removal of the suffix when its objects are in the promotion of commerce, art, science, education, religion, charity or any other prescribed object.
There are no shareholders or share capital in this type of company. Instead of shareholders, they are required to appoint member/s, who guarantee to contribute 1 euro to the company in the event of its winding up (subject to the Company Constitution).Order CLG Company online
Company Limited By Guarantee (CLG) €395 – Standard
All CLG’s are required to have a minimum of 2 directors and one member (this is their version of a shareholder). The directors can also be members.
Company Limited By Guarantee (CLG) €495 – With MUD Act Provisions
‘The Multi-unit Development’ (MUD) Act applies to land on which there is building(s) comprising of 5 or more units intended for residential use ie. property management companies. The act is intended to reduce issues between developers and homeowners. Any CLG’s that are residential property management companies need to have special provisions in their Constitution in order to comply with the MUD Act. The directors can also be members, and generally, one person from each property unit in the development will be appointed a member of the company and each will have one vote.
Company Limited By Guarantee (CLG) €495 – Charitable Status Provisions
A company that intends to apply for Charitable Status must be setup as a non-profit venture with no beneficial owners and is required to have certain clauses within the company’s constitution. Charitable Status can be applied to the Revenue Commissioners on projects which are set up for charitable, scholastic or religious purposes. It should also be noted that such Companies are required to prepare and file audited accounts every year with the Companies Registration Office (CRO). These CLG’s are required to have at least 3 non-related directors and a minimum of 3 non-related members. The directors can also be members.
For more information please view Application for Charitable Status.Contact us now for further details