Perhaps I will come back to this question later but for now, as the explanation is quite involved, I will say simply:
-I personally hold a job role, which is self employed (cant be ltd due to law), high risk (to life of myself and others), in a volatile industry (construction)
-as such, despite having insurance (which is undeveloped for my particular field as there arent many providers), you cant rely on that as a form of protection against any claims, if really unfortunately I or someone else had an accident at work.
-with this said, as opposed to most people where they try to separate liability from work by operating as ltd, I try to limit the personal assets I personally own (such as a mortgaged property) by having them owned via another ltd company of which I am not a shareholder/guarantor, but a director with full control who provides the personal guarantee for the mortgage. In doing this it makes me an employee (the benefit being that I can retain full control over the assets, without owning them)
-some might frame this as a sneaky run around, but honestly it isnt. The assets in question aren't for direct monetary gain of shareholders or myself, but for the long term purchase and renovations of property which primarily are rented out, but in some instances can also provide geographical and logistical benefits to shareholders/guarantors via benefits in kind.
-so in weighing up whether to set up as ltd by shares or by guarantee, I am looking at the latter, as it essentially prioritises the needs of the business ahead of the needs of the shareholders (more so than a ltd by shares company). This benefits everyone, because certain family members of mine who would act as guarantors would receive, instead of share dividends, member benefits such as the utilisation of unleased rooms and addresses to register mail at. They would also benefit from getting to be guarantor/member of a non profit organisation without the assuming of debt liability which is held by me (the director) This would be subject to their level of contribution to the non profit as assessed by myself, the director.
On a very fundamental level, I am accruing assets personally for my family, by performing very dangerous and liable work. With this said, I cannot risk to hold the assets myself. I want to create a company which can hold the assets for me, and through which I can manage with total authority. My family, many of whom need to be kept in line, can be a part of this company as a member, but are required to be active participants as opposed to shareholders who ordinarily wait for dividends to come in. Those family members who contribute, can receive benefits in kind for contributing to the company which in terms of its company purpose (setting aside my own) is to provide high quality rooms for rent to young professionals. All profits are re-invested into this endeavour.
Please understand this is a work in progress and I am consulting a few advisors though the more feedback and input I get the better.
Appreciate any further advice to the validity and nuances I may encounter to set this up.
