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
Replies (15)
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A bloke called Michael is anonymous ?
There are quite a lot of people called Michael so pretty anonymous.
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.
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.
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.
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 ?
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.
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.
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.
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...