Resources - Public Company Limited by Guarantee

Public Company Limited by Guarantee

What is it and its purpose?

These companies, in our experience, are the most common entity used by someone wanting to start a public benevolent institution which intends to register as a charity. The constitution contains the Gift fund, winding up and responsible person provisions which are required by the Australian Charities and not for profits commission.

How does it require?

It requires the completion of the charitable objects at the back of the document which have to be specific to the client’s intentions with the organisation. These require consultation with PGG Legal. As public companies, a minimum of 3 directors is required and these directors should all fall within the definition of a “responsible person

How does the constitution work?

These constitutions are often amended again at the request of the Australian Charities and Not for Profit Commission. For this reason, there is no guarantee that the use of this constitution will automatically confer charity status. To obtain that status, with the attendant tax status of income exemption and deductible gift recipient status, can be a long and difficult process, sometimes requiring multiple amendments and applications.

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