Limited by guarantee

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The members of a registered company (see: Registered company) that is limited by guarantee have their liability limited to the amount they guarantee. Unlike a company that is limited by shares (see: Limited by shares) the guarantee need not be paid in advance, but only if the company becomes insolvent. This form of limitation is not available to new companies, but there are some such companies still in existence. They are all public companies; private companies limited by guarantee have become private companies limited by shares with zero share capital.

UK LAW