Company limited by guarantee

A Company limited by guarantee is a kind of Limited company. In a limited company, the liability of each of the people owning the company is limited. There are two sorts of companies: those limited by shares, and those limited by guarantee. In a limited company, there are shares, and each shareholder is responsible up to the amount of the share, if the company goes bankrupt. In a company limited by guarantee, each member gives a guarantee, to take liabilities up to a certain amount. Very often, companies that are not profit-oriented use this structure. Two examples of such companies are PGA European Tour, which organises golf tournaments, and Oxfam, which distributes aid.
Companies limited by guarantee exist in the United Kingdom, and many Commonwealth countries.