company law

Conflicts of interest

A conflict of interest arises when the interests of a member of the management committee/board are in conflict with the interests of the organisation they are helping to govern. This can be direct, in relation to the interests of the individual, or indirect, in relation to the interests of a close relative or business partner.

Company Limited by Guarantee

A company limited by guarantee is an incorporated organisation.  This means that it has gone through the registration process that converts a new or existing business into a corporate body, making it a legal entity in its own right.  

With a company that is limited by guarantee, the financial liability of members, including the Management Committee is usually limited to a nominal amount, should the company face financial difficulties (although it does not protect against fraud, negligence, etc).

Info sheet: Community Interest Companies

A community interest company (CIC) is a limited liability company created with the specific aim of providing benefit to a community. It is a relatively new legal structure, designed to meet the needs of social enterprises and ‘not-for-profit' projects, which combine the pursuit of a social purpose with commercial activities.

A community interest company shares many of the features of a limited company, in that it is incorporated and the financial liability of its Directors is limited to a nominal amount.