5/8/2011 Limited by guarantee So what is guaranteed? What is the effect of such provision in the memorandum or articles? the board or members pass any resolution purporting to give any person a right to participate in its divisible profits 29 No limits to liability Members personally liable for company debts -without limit. With or without share capital. Shares used for dividing profits. If the co wound up,members have to pay its debts pro rata to their shareholdings. 155/8/2011 15 Limited by guarantee • So what is guaranteed? • What is the effect of such provision in the memorandum or articles? the board or members pass any resolution purporting to give any person a right to participate in its divisible profits 29 No limits to liability • Members personally liable for company debts -without limit. • With or without share capital. • Shares used for dividing profits. • If the co wound up, members have to pay its debts pro rata to their shareholdings. 30