A public company limited by guarantee (PCLBG) is a not-for-profit entity which enables a group of persons (members) to register as an incorporated structure under the Corporations Act 2001 (Cth).
The PCLBG structure must have one member but can have more members, depending on its strategy. The liability of a member is limited to the amount the member agrees to contribute if the PCLBG is wound up and is then unable to pay its debts.
A PCLBG must have a board consisting of at least 3 directors, who are responsible for governance.
A PCLBG provides the members of the PCLBG and its directors with the protection of the corporate veil, to the extent possible at law.
The PCLBG has all of the powers of an individual at law and a body corporate under the Corporations Act. It can sue and be sued, own property and enter contracts, borrow money and make investments. The property and income of the PCLBG must only be used in furtherance of its purpose.
A PCLBG may be capable of being registered as a charity. A PCLBG is required to report on some matters to ASIC and, if a charity, on other matters to the Australian Charities Not-for-profit Commission.
Please do not hesitate to contact Lesleigh to discuss whether a public company limited by guarantee might be the optimum legal structure for your purpose.