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What is a company limited by guarantee?
An organisation can incorporate as a company limited by guarantee when there are a number of stakeholders (members) whose interests have to be accounted for and where a profit motive is not the prime objective of the organisation. (The prime objectives of the AWA are contained within the Constitution)
The regulator for companies limited by guarantee is the Australian Securities and Investment Commission (ASIC).
"Limited by guarantee" means that if the company is wound up, and it is in debt, the liability of members is guaranteed to be a nominal amount (often in the range of $20 - $100).
Directors of a company limited by guarantee will be subject to all of the duties and obligations for a commercial company set out in the Corporations Act 2001.