GibraltarWealth Management
What is a Company Limited by Guarantee?
The Gibraltar Companies Ordinance does not permit a company to be created in which the members are free from any liability, but, as an alternative to limiting their contribution to the amount payable for their shares, it enables them to agree that in the event of liquidation they will, if required, subscribe an agreed amount. The Ordinance recognises two forms of company limited by guarantee, namely, the guarantee company without a share capital and the guarantee company with a share capital. The former is the guarantee company in its pure form, whereas the latter is something of a hybrid.
In the case of a pure guarantee company, a member is under no obligation to subscribe up to the amount of his guarantee while the company is a going concern; it is only when the company is being wound up, if a contribution is needed to enable the debts to be met, that any liability on the guarantee arises. But in the case of a guarantee company
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