A Company Limited by guarantee is a corporation that can act as a legal person and deal with creditors and other parties who have lent money to the company. It is the equivalent of an LLP registered with Companies House.
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This form of the Company can only be formed in the UK and Wales. It is, however, possible to incorporate a company online, through a process called internet incorporation.
When a company is formed, it will need to submit its Certificate of Incorporation, which is based on the guidelines laid down by the Companies Act 2020. This includes information relating to the name and address of the company, the persons authorized to act on behalf of the company and its registered office address. It also has to state any requirements regarding the contents of the Articles of Association and the fixed date for the next annual general meeting of the company.
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Incorporating a company through the internet is as simple as clicking a button. A company’s assets will need to be checked by the Registered Offices so the company will be able to submit the correct forms to Companies House. The Registered Office should be checked every year and updated every four years, as per the requirements of the Companies Act.
A statutory declaration will need to be submitted by the directors of the company at the Annual General Meeting. This will state the directors own or their owners’ names and addresses, and whether they are related to the company. It will also include all income received and expenditure incurred by the company during the year and a statement that the directors have full authority to make such decisions and bind the company to do so.
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It is necessary to obtain the Annual General Meeting’s consent from shareholders before taking any action. At this point, the shareholder will have the opportunity to remove the directors, which will result in a special meeting being called to elect a new board.
It is a very important step for a company to be able to do business in a manner that is acceptable to all parties concerned. This requires taking account of all current and future financial arrangements of the company. It is advisable to have a written outline of the company’s business arrangement before it starts a business.
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The directors of a company need to ensure that their shareholders are satisfied with the business structure of the company and that they have full knowledge of how all the cash and accounts of the company are being managed. This is a very useful asset for a company to have to prevent failure. The business structure and financial arrangements of a company will have a large bearing on the success of the company, but the directors must ensure that they are fully informed of this and that they have full control over the company at all times.
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