Company Limited By Guarantee

Company Limited By Guarantee

In the case of a company limited by guarantee and not having a share capital, every provision in the memorandum or articles or in any resolution of the company purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member shall be void.

Whether or not the company has a share capital:

The memorandum shall state the name of the company with the parenthesis and words “(Guarantee) Limited” as the last words of its name the province or the part of Pakistan not forming part of a Province, as the case may be in which the registered office of the company is to be situate the objects of the company and except in the case of a trading corporation, the territories to which they extend that the liability of the members is limited that each member undertakes to contribute to the assets of the company in the event of its being wound up while he is a member or within one year afterwards, for payment of the debts and liabilities of the company contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for adjustment of the rights of the contributories among themselves such amount as may be required, not exceeding a specified amount.

If the company has a share capital:

The memorandum shall also state the amount of share capital with which the company proposes to be registered and the division thereof into shares of a fixed amount no subscriber of the memorandum shall take less than one share, each subscriber shall write opposite to his name the number of shares he takes.