This type of company is a popular form for membership organisations, charities and not-for-profit organisations because of the unique membership and voting regulations.
This type of company is one which has a number of Members who control the Company in a similar way to Shareholders in a Limited Company but with some important differences:
- The Members have one vote per Member; there are no differences in anyone’s stake in the Company
- The assets of the Company do not belong to the Members and are not distributed to them in the form of dividends