GUARANTEE COMPANY

An Isle of Man company limited by guarantee is a private limited company in which the liability of its members is limited to an amount (as stated within the company's Memorandum of Association) that will be called upon in the event that the company is wound up and there are insufficient funds within the company to meet all creditors claims. A guarantee company may also have and be incorporated with a share capital and in the event of a winding up, a member will be liable to pay to the company any sum due on his shares and also to contribute to the assets of the company according to the guarantee as stipulated within the company's Memorandum of Association. A company limited by guarantee is ideally suited for a wide range of activities, especially where profits cannot be distributed to members, e.g. a charity or housing association, or for the not-for-profit promotion of education, commerce, art, science, and sport etc. or promoting a particular policy. They are also used for managing semi-governmental and regulatory functions where a former state or local authority function has been privatised or taken back into public ownership.

Crossman Trust Company Limited PO Box 1, Portland House, Station Road, Ballasalla, Isle of Man, IM99 6AB, British Islands. Telephone: +44 (0)1624 825805 or 822816, Fax: +44 (0)1624 824570, E-Mail: mail@crossmantrust.com