Limited by Guarantee

[Carbonoid_1984]

Hi forum users. I am aware that limited by shares company members are the person/s that have bought shares within the company, but who are the members of a company limited by guarantee setup as a not-for-profit business. As in one that is a sports club offering access to a gym.

Any help simplifying this would be great.

 

[ethical PR]

Well they can either be members with voting rights who have ultimate control over the company and its directors, or in the case of a sports club, paying or social members who use services...what's the context of your question?

 

[Carbonoid_1984]

Sorry if I appear dense on the subject, its because I am and this is new to me

Limited by Shares member = Persons who buy 'x' amount of shares in an organisation.
Limited by Guarantee member = Any person/s who pay to use the facilities provide by the organisation and/or pay a monthly subscription fee and/or fit criteria set out within the Articles of Association?

Is the above statements correct or am I missing something.

How does the statement apply to the member of a LTD by Guarantee on the organisation winding up.

Liability of members
5. The liability of each member is limited to £1, being the amount that each member undertakes to contribute to the assets of the organisation in the event of its being wound up while she or he is a member or within one year after she or he ceases to be a member, for:

Sorry can't find any other way to word it, its confusing.

 

[Scalloway]

Having been a director of several companies limited by guarantee the identity of the people who are guaranteeing their £1 has never really been clear to me as I have never been aware of one folding. There will be a list of guarantors who sign up at the start. Also if the company runs a club there will be the club members.