In a company limited by guarantee, the liability is limited to the amount of the guarantee set out in the company's articles, which is typically just £1. In both a company limited by shares and one limited by guarantee, the people running the company (the directors) will only incur any personal liability for the company's debts if they have been guilty of some wrongdoing, such as wrongful or fraudulent ;· When someone signs up to be a member of a guarantee company, they agree to guarantee the company’s debts up to a certain nominal amount, normally £1. A company limited by guarantee is a legal person in its own right, so it can enter into contracts, employ staff, and so ;· Companies Limited by Guarantee (CLG) have been in existence since 1862 and are simply an alternative type of corporation, primarily used for not-for-profit Companies Limited By Guarantee | Harper James Companies limited by guarantee: A beginner’s guideCompany Law Club // Companies Limited by GuaranteeCompany Law Club // Companies Limited by Guarantee
