OMCs Part 7: Company Limited by Guarantee not having a Share Capital (CLG)
In our last blog on OMC’s (Owner Management Companies) we covered the fact that the new Companies Act 2014, which came into force from 1 June 2015 will affect OMC’s. We noted that depending on the structure of your OMC different areas of the Act will apply. In this blog we will cover some of the main changes for CLG’s (Companies Limited by Guarantee not having a share capital). Under the new Act CLG’s the status of existing guarantee companies is covered by section 1189 and are governed by Part 18 of the Act. Some of the main points of CLGs will be that:
- No conversion process is necessary - Will have a constitution consisting of a Memorandum of Association and Articles of Association, - The Memorandum and Articles of Association that were in place before the commencement of the Act will remain unless they are inconsistent with the mandatory provisions of the Act, - An objects clause will continue to be included in its constitution.
- Will be required to change its name to include the term “Company Limited by Guarantee”
- Will be required to have at least 2 directors and to hold an AGM