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Corporations and legal personality

Unlimited companies

An unlimited company is a separate legal entity and, if it has assets, it will have the
benefits arising from separate legal personality. However, if the company’s assets
are insufficient to meet its liabilities, all members are liable to contribute without limit
towards paying its debts and the cost of liquidation.

Such companies do have the advantage that they need not have their accounts
audited, and need not deliver annual copies to the Registrar of Companies.

Community interest companies

Since 2004 it has been possible to form a ‘Community Interest Company’ for those
wishing to establish social enterprises. The company’s object must be considered by
a reasonable person to be of benefit to the community and any surpluses made by
the company should be reinvested for the purposes of the company.

Such a company must first be registered as a company limited by guarantee or as a
company limited by shares and then apply to the Regulator of Community Interest
Companies for Community Interest Company status.

These companies may be used as vehicles for community interests such as a local
crime prevention group. The company name must end in C.I.C.

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