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incorporation of Co
Corporate & Other Laws
point 9 meaning.. a member only give gaurantee & don't hv share..can't participate in dividend ?
Answers (10)
Sugam SM
Guaranteer being member is eligible for participating in div. Where as any external guaranteer is not eligible for the same.
a Co thts limited by gaurantee and not having a share capital can't giv dividend to members ?
Sugam SM
Guaranteer being member is eligible for participating in div. Where as any external guaranteer is not eligible for the same.
external garantee as in ? even if a person is not a shareholder only giving gaurantee to the Co is also counted as member
CA Suraj Lakhotia Admin
If guarantee is given by a non-member, dividend cannot be paid to such member.
MrA have no share in XLtd, only gave gaurantee will MrA b considered as a member ?
Thread Starter
Sushmita ChowdhuryMrA have no share in XLtd, only gave gaurantee will MrA b considered as a member ?
For Companies Limited by Guarantee
Sudha Reddy
For Companies Limited by Guarantee
can you please give me example of when is a person giving guarantee and having no share.....is considered as a member and not considered as a member ?
A dividend is a distribution of company profits paid to shareholders as a reward for their investment in shares. Companies limited by guarantee & not having share capital are usually non- profit in nature. They don't have shares nor shareholders, so they cannot pay dividends.
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