What is Company limited by guarantee?
A '''Company limited by guarantee''' is a kind of [[Limited company]]. In a limited company, the liability of each of the people owning the company is limited. Some companies are limited by [[Share (finance)|shares]], and some limited by guarantee. In a limited company, there are [[Share (finance)|shares]], and each shareholder is responsible up to the amount of their shares, if the company goes [[Bankruptcy|bankrupt]]. In a company limited by guarantee, each member gives a guarantee, to take liabilities up to a certain amount. Very often, companies that are not profit-oriented use this structure. Two examples of such companies are [[PGA European Tour]], which organises golf tournaments, and [[Oxfam]], which distributes aid. Companies limited by guarantee exist in the [[United Kingdom]], and many [[Commonwealth of Nations|Commonwealth]] countries. {{stub}} [[Category:Companies]]