COMPANIES ACT - 1963 (ACT 179)

    Section - 10 - Companies Limited by Guarantee

    (1) A company limited by guarantee may not lawfully be incorporated with the object of carrying on business for the purpose of making profits.

    (2) If any company limited by guarantee shall carry on business for the purpose of making profits, all officers and members thereof who shall be cognisant of the fact that it is so carrying on business shall be jointly and severally liable for the payment and discharge of all the debts and liabilities of the company incurred in carrying on such business, and the company and every such officer and member shall be liable to a fine not exceeding five pounds for every day during which it shall carry on such business.

    (3) The total liability of the members of a company limited by guarantee to contribute to the assets of the company in the event of its being wound up shall not at any time be less than one hundred pounds.

    (4) Subject to compliance with subsection (3) of this section, the Regulations of a company limited by guarantee may provide that members can retire or be excluded from membership thereof.

    (5) If in breach of subsection (3) of this section the total liability of the members of any company limited by guarantee shall at any time be less than one hundred pounds, every director and member of the company who is cognisant of the breach shall be liable to a fine not exceeding one hundred pounds.