The Owners are known as GUARANTORS. They are individuals who own and control the company through meetings. They also GUARANTEE to contribute a certain amount of money – should the company become insolvent. The Amount of that Guarantee is limited to a nominal Value which is needs to be declared upon forming a company.
What is a Guarantor:
- they are company members
- they are the people who control the company and make important decisions
- they must promise an agreed amount of money to the company if it can’t pay its debts
- don’t usually take profit from the company – instead the money is kept within the company or used for other purposes
Guarantee companies must have at least one director and member. One person may be both the Guarantor and Director. The Director will be responsible for managing the day to day activities of a company.