What is a Public Company Limited by Guarantee used for?
A public company limited by guarantee is used for not-for-profit organisations (such as sporting clubs, interest groups, representative bodies or charities). It does not have share capital and the liability of its members is limited to the amount of the guarantee (usually a nominal amount). It must not distribute income or assets to its members.
- Three directors – must be over 18 years of age and at least two directors must be ordinarily resident in Australia
- At least one secretary is required, who must live in Australia
- A public company must have at least one member, but there is no upper limit on its number of members
- Members must agree to contribute an amount of money (often an amount between $10 and $100) should the company be wound up and if there are insufficient assets to cover liabilities