Although we often think of a ‘company’ as being a for-profit business, a company limited by guarantee is a special form of public company that can be used by not-for-profits.
Companies limited by guarantee sit under the Corporations Act 2001, and are regulated by the Australian Securities and Investments Commission (ASIC).
They use a governance structure with ‘directors’, but has ‘members’ instead of ‘shareholders’. The following factsheets contain information for directors of these organistions.
- Factsheet 1: Directors and companies limited by guarantee
- Factsheet 2: Duty to act in good faith
- Factsheet 3: Duty to act with due care
- Factsheet 4: Duty not to trade while insolvent
- Factsheet 5: Duty to avoid conflicts of interest
- Factsheet 6: Duty to not misuse your position
- Factsheet 7: Duty to retain discretion
- Factsheet 8: Preventing and mitigating breaches of duties
- Factsheet 9: Glossary and resources
You can find more information on companies limited by guarantee in the Start a community service organisation section of Community Door.