Guarantee Companies

A Company Limited by Guarantee (CLG) is a corporate structure maintained under Ireland’s Companies Act 2014. These companies are generally non-profit, with no share capital, and are typically used for charities, clubs, and similar organizations. Instead of shares, members provide a nominal guarantee toward liabilities if the company is wound up.

Structure and Naming

CLGs are governed by a constitution with a memorandum and articles of association, specifying the company’s objectives, member liability, and guarantee terms. The name must include “Company Limited by Guarantee” or its Irish equivalent, abbreviated as “CLG” or “CTR.” Non-CLGs are prohibited from using this designation.

Financials and Winding Up

Financial reporting requirements apply to CLGs, with some eligible for audit exemptions. Members’ liability is limited to the guarantee amount, protecting personal assets. Upon winding up, members only contribute the guaranteed amount, often nominal. The CLG structure supports organizations operating without profit distribution to members.