Company limited by guarantee

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A company limited by guarantee (CLG) is a type of corporation where the company has no share capital (although rare exceptions exist). Members instead act as guarantors of the company's liabilities: each member undertakes to contribute an amount specified in the articles (typically very small) in the event of insolvency or of the winding up of the company.^[1]

The form originated in the United Kingdom, and now exists under the company law of the UK, Australia, Bermuda, Gibraltar, Hong Kong and Ireland, and in the Canadian provinces of Alberta and Nova Scotia (and previously in New Zealand).

It is used primarily but not exclusively by non-profit organisations (including charities) that require legal personality. Other uses include mutual insurance companies and quasi-governmental bodies.