A CLG is an alternative type of corporation used primarily for non-profit organizations that require legal personality.

A CLG does not have a share capital.

The liability of its members is limited by the company’s articles to the amount that the members undertake, to contribute towards the debts of the company in the event of its winding up.

Its certificate of incorporation states that it is a company limited by guarantee.

Various associations for charitable causes and not for profit (for example, clubs, and associatio may be incorporated in many forms including as a company limited by guarantee.

The profits realized is not distributed to the shareholders as in the case of a private company limited by shares but is rather re-invested for the good of the business.