Winding Up a Company Limited by Guarantee
Winding up a company that is Limited by Guarantee is relatively uncommon, simply because there are far fewer companies Limited by Guarantee, rather than having Ordinary Shareholders.
The winding up of a company Limited by Guarantee is still guided by the Corporations Act. Often they are Not For Profit organisations so it is especially important to review the company’s Constitution to see what specific rules will apply in a winding-up. Most commonly, the Constitution will require that any surplus assets be distributed to a “’like-minded institution” or words to that effect. That is, the surplus assets are not distributed to the Members.
The liquidation of a company Limited by Guarantee must be conducted by a Registered Liquidator. At Insolvency Solutions Group, we have conducted a number of these types of liquidation so if you need advice or someone to act as the liquidator, please give us a call.
If you would like to learn more about Liquidation, please access our full Liquidation guide created by Insolvency Solutions Group’s specialists explaining this in detail.