Aims and Objects for

Company limited by guarantee

To register a company limited by guarantee the AIMS or OBJECTS must be stated in the company’s constitution (Memorandum & Articles of Association) and a statement must be made about how ‘profits’ will be used. Your aims will be different from anyone else’s but these examples will help your thinking. Take a sheet of paper and write down what you intend to do and how it will benefit the community. Then try to summarise your notes into a few crisp statements.


A sports club

a. To promote the sport of ….
b. To supply training facilities for the sport.
c. To provide and maintain facilities for the playing of ….
d. To encourage and develop players at all skill levels and ages.


A political organisation serving an ethnic group

a. To recruit new members for ….
b. To educate members in democratic and legal knowledge.
c. To offer language support to members in the UK and assist with legal support.
d. To provide financial support to members resident in ….
e To monitor observance of Human Rights in ….


A music festival

a. To promote the awareness and appreciation of …… and associated music from around the world.
b. To increase trade and business within the town of …… and the surrounding area, especially during the time of the Festival.
c. To provide entertainment and recreation for residents and visitors, during the time of the Festival.
d. To ensure that the Festival generates sufficient income to cover its continued operation.


A community based service for the unemployed

a. To provide training for unemployed people, initially but not exclusively, within the …… area.
b. To offer training services to unemployed people regardless of age or background.
c. To provide training and work placement opportunities in a multi-media discipline.
d. To co-operate with other charities and organisations to achieve common goals in synergy with the above stated Aims.


A residents’ association

a. To manage, repair, maintain and insure against all risks the property known as …. situated at …. in the county of …. (the property) for the benefit of the leaseholders of …. In carrying out the above to be mindful of the interests of the freeholder and occupiers other then the leaseholders but where the interests of the parties may be in conflict the interests of the leaseholders will always take precedence.

b. To employ contractors, subcontractors and professional advisors as necessary to assist with or carry out the company’s objectives.

c. Where the leases of the leaseholders show that any repair, renewal or maintenance of whatsoever nature is the responsibility of the freeholder to pursue the freeholder to ensure that the obligations contained in the leases are complied with promptly and at the cost of the freeholder.

d. To secure monthly contributions from the leaseholders sufficient to cover all the costs envisaged in these objects. Each separate apartment will submit the same total monthly contribution. Where a leaseholder has sublet an apartment or part thereof the leaseholder may arrange for the occupant to make contribution but the leaseholder retains the primary responsibility for making the contribution or making good any shortfall. The company will not aim to make a profit from its operations but will endeavour to set aside such reasonable sums, as the members consider necessary to make contingencies. The management company may annually review and revise contributions made by the leaseholders.
e. To undertake any activity with the object of maintaining or improving the property and its environment for the benefit of the leaseholders including taking legal advice and making representations to local authorities or other bodies whose interests may or may not conflict with those if the leaseholders.

 

 

 

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These examples provide a tiny selection of the diversity that is covered by not-for-profit organisations. There are countless ways that people work (and play) together in clubs, societies, networking groups etc. But, in an increasingly litigious society, many are seeking to protect their group by obtaining limited liability through registering it as a guarantee company.

Company limited by guarantee

Information and procedures for registering a traditional trustee company for a not-for-profit organisation not seeking charity registration.

Community Interest Company (CIC)

Information and ordering procedures for registering a Community Interest Company (CIC).

Charity limited by guarantee

Information and procedures for registering a limited liability company using a constitution suitable for subsequent charity registration.

Private limited company

Standard limited companies for normal business activities


"Dedication of funds"

 

A company limited by guarantee defines its not-for-profit status by stating in its constitution what will happen with any money that remains in the company on dissolution. This is stated in general terms as follows:

  • If the Company is wound up or dissolved and after all its debts and liabilities have been satisfied there remains any property it shall not be paid to or distributed among the members of the Company but shall be given or transferred to some other Company or bodies having objects similar to the Objects which prohibits the distribution of its or their income and property to an extent at least as great as is imposed on the Company by Clause 5 above chosen by the members of the Company at or before the time of dissolution and if that cannot be done then to some other charitable object.

Ordered Management will help you

We specialise in this business, so don’t be discouraged if you find it hard to put the words together. Tell us in plain English what you intend to do and we’ll help you create the wording for your Aims etc.