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Non profit distribution clause

Non profit distribution clause in the articles

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Hi there,

I'm looking for an M&A of a company limited by guarantee that has a non profit distribution clause in its articles. Can someone tell me when I can find one.

Many thanks

Michael

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By Justin Bryant
28th Jun 2019 17:45

Surely you can find loads at the usual Beta website?

Thanks (1)
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By Accountant A
28th Jun 2019 17:48

Not if you post anonymously, no.

Thanks (0)
Replying to Accountant A:
RLI
By lionofludesch
28th Jun 2019 18:05

A bloke called Michael is anonymous ?

Thanks (1)
Replying to lionofludesch:
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By Accountant A
28th Jun 2019 20:57

Quote:

A bloke called Michael is anonymous ?

There are quite a lot of people called Michael so pretty anonymous.

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By AIMCON
28th Jun 2019 18:35

I tried but non of the ones (over 20) I opened, which are not C.I.C, has a non profit clause.

I guess "Accountant A" is not anon.

Thanks (1)
Replying to AIMCON:
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By Accountant A
28th Jun 2019 20:58

Quote:

I tried but non of the ones (over 20) I opened, which are not C.I.C, has a non profit clause.

I guess "Accountant A" is not anon.

You can see all my postings. I can't see yours when you post anonymously.

Thanks (0)
RLI
By lionofludesch
28th Jun 2019 22:16

Seriously - you're asking the wrong people.

A companies registration agent or a lawyer is what you need.

I wouldn't feel happy writing a company's Articles and, anyway, I'm not sure it's legal for me to do so.

Thanks (0)
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By Matrix
28th Jun 2019 21:29

I have such a client and checked the objects. It is a co ltd by guarantee and it does not mention that it is a non profit organisation (I don’t think this is a term under English law in any case).

It prohibits dividends and payments out of profits to members though.

Don’t want to send the link to preserve my anonymity.

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Replying to Matrix:
RLI
By lionofludesch
28th Jun 2019 22:17

I think this is about not distributing profits rather than not making profits.

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Replying to lionofludesch:
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By Matrix
28th Jun 2019 23:39

It is a non-profit organisation though. It just doesn’t say so in the memo and arts.

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Replying to Matrix:
RLI
By lionofludesch
29th Jun 2019 09:52

What's a non-profit organisation ?

What happens if they accidentally make a profit ? Do they give some money back to the customers ? Are they permitted to make a loss ? Is is mandatory to make a loss ? If it is, who funds it ?

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Replying to lionofludesch:
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By Matrix
29th Jun 2019 10:24

I already said that I am not aware of the term under English law, however they refer to themselves as a non-profit organisation which I believe is a US term.

There are no terms answering your questions in the articles. They regularly make a profit, obviously I could put my fees up to prevent this...

If the OP has looked at 20 others which also have no such terms then maybe there is a reason, see my first sentence.

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Replying to Matrix:
RLI
By lionofludesch
29th Jun 2019 10:37

Quote:

I already said that I am not aware of the term under English law, however they refer to themselves as a non-profit organisation which I believe is a US term.

There are no terms answering your questions in the articles. They regularly make a profit, obviously I could put my fees up to prevent this...

Clearly, there's a paradox there.

Non profit organisation yet makes a profit every year.

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
29th Jun 2019 13:19

I always thought the phrase was "Not for Profit" rather than "Non-profit"

Of course the nasty word can be avoided by using surplus and deficit instead.

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By WhichTyler
29th Jun 2019 11:16

Just about every charitable company has one

See the model articles here for an example (Article 6)

https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

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