Limited By Guarantee

Business, Legal & Accounting Glossary

Definition: Limited By Guarantee



Full Definition of Limited By Guarantee


The members of a registered company (see: Registered company) that is limited by guarantee have their liability limited to the amount they guarantee. Unlike a company that is limited by shares (see: Limited by shares) the guarantee need not be paid in advance, but only if the company becomes insolvent. This form of limitation is not available to new companies, but there are some such companies still in existence. They are all public companies; private companies limited by guarantee have become private companies limited by shares with zero share capital.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/limited-by-guarantee/
Modern Language Association (MLA):
Limited By Guarantee. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 25, 2020 https://payrollheaven.com/define/limited-by-guarantee/.
Chicago Manual of Style (CMS):
Limited By Guarantee. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/limited-by-guarantee/ (accessed: September 25, 2020).
American Psychological Association (APA):
Limited By Guarantee. PayrollHeaven.com. Retrieved September 25, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/limited-by-guarantee/

Definition Sources


Definitions for Limited By Guarantee are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th April, 2020 | 2 Views.