Guarantee Company Aims

NOTE: Your company's incorporation documents must include a statement of the aims of the organisation. These brief points indicate "why" rather than "how" you will run the company. Because this is a not-for-profit organisation, you must also include a paragraph (called "Clause 9") indicating what will happen with earnings that exceed the costs of running the company, or any money that is left over if the company is wound up. The following examples may not exactly match your objectives, but will give you ideas about how to word your aims.

examples of aims

(to be incorporated into Memorandum of Association)

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EXAMPLE 1 (A sports club)

3. The objects of the company are:

a. To promote the sport of ...

b. To supply training facilities for the sport.

c. To provide and maintain facilities for the playing of ...

d. To encourage and develop players at all skill levels and ages.

CLAUSE 9

Earnings over current expenditure will be designated for the maintenance of the facilities and services of the club and/or for the continued promotion of ...

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EXAMPLE 2 (A political organisation)

3. The objects of the company are:

a. To recruit new members for ...

b. To educate members in democratic and legal knowledge.

c. To offer language support to members in the UK and assist with legal support.

d. To provide financial support to members resident in ...

e. To monitor observance of Human Rights in ...

CLAUSE 9

Earnings over current expenditure will be dedicated to the continued promotion of the Objects set out in Clause 3, either through the company or through other entities at the discretion of the Trustees.

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EXAMPLE 3 (A Housing Association)

3. The objects of the company are:

a. To manage, repair, maintain and insure against all risks the property known as ... situated at ... in the county of ... (the property) for the benefit of the leaseholders of ... In carrying out the above to be mindful of the interests of the freeholder and occupiers other then the leaseholders but where the interests of the parties may be in conflict the interests of the leaseholders will always take precedence.

b. To employ contractors, subcontractors and professional team as necessary to assist with or carry out the company's objectives.

c. Where the leases of the leaseholders show that any repair, renewal or maintenance of whatsoever nature is the responsibility of the freeholder to pursue the freeholder to ensure that the obligations contained in the leases are complied with promptly and at the cost of the freeholder.

d. To secure monthly contributions from the leaseholders sufficient to cover all the costs envisaged in these objects. Each separate apartment will submit the same total monthly contribution. Where a leaseholder has sublet an apartment or part of thereof the leaseholder may arrange for the occupant to make contribution but the leaseholder retains the primary responsibility for making the contribution or making good any shortfall. The company will not aim to make a profit from its operations but will endeavour to set aside such reasonable sums, as the members consider necessary to make contingencies. The management company may annually review and revise contributions made by the leaseholders.

e. To undertake any activity with the object of maintaining or improving the property and its environment for the benefit of the leaseholders including taking legal advise and making representations to local authorities or other bodies whose interests may or may not conflict with those if the leaseholders.

Each of the above objects has equal status and no object shall take precedence over the others.

Clause 9

All earnings over current expenditure will be designated for the continued maintenance of the property.

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EXAMPLE 4 (A fund raising venture, not registered as a charity)

3. The objects of the company are:

a. To promote understanding of ...

b. To advance the care of ...

c. To vend products in order to generate income for the cause.

d. To facilitate the purchase, development and management of a site for ...

Clause 9

All earnings over expenditure will be designated for the purchase, development and management of ... or otherwise to pursue the objectives set out in Clause 3.

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EXAMPLE 5 (A Music Festival)

3. The objects of the company are:

a. To promote the awareness and appreciation of ... and associated music from around the world.

b. To increase trade and business within the town of ... and the surrounding area, especially during the time of the Festival.

c. To provide entertainment and recreation for residents and visitors, during the time of the Festival.

d. To ensure that the Festival generates sufficient income to cover its continued operation.

CLAUSE 9

Earnings in excess of current costs in each year will be dedicated to the continued success of the Festival. In the event of the winding up of the company, any remaining monies will be used at the discretion of the Directors for the time being to further the appreciation of ... and associated music.

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EXAMPLE 6 (a company to hold and manage communal land)

3. The objects of the company are:

a. To hold the communal land within the site known as ... situated at ... in the county of ... (the site) in trust for the benefit of the freeholders of the properties built on the site. To manage, repair, maintain and insure the site against all risks. In carrying out the above to be mindful of the interests of the freeholders and occupiers of the properties built on the site.

b. To employ contractors, subcontractors and professional team as necessary to assist with or carry out the company's objectives.

c. Where it is shown that any repair, renewal or maintenance of whatsoever nature is the responsibility of the freeholder to pursue the freeholder to ensure that their obligations are complied with promptly and at the cost of the freeholder.

d. To secure ... contributions from the freeholders sufficient to cover all the costs envisaged in these objects. Each separate property will submit the same regular contribution. Where a freeholder has sublet a property or part thereof the freeholder may arrange for the occupant to make contribution but the freeholder retains the primary responsibility for making the contribution or making good any shortfall. The company will not aim to make a profit from its operations but will endeavour to set aside such reasonable sums, as the members consider necessary to make contingencies. The company may annually review and revise contributions made by the freeholders.

e. To undertake any activity with the object of maintaining or improving the site and its environment for the benefit of the freeholders including taking legal advice and making representations to local authorities or other bodies whose interests may or may not conflict with those of the freeholders.

Each of the above objects has equal status and no object shall take precedence over the others.

Clause 9

All earnings over current expenditure will be designated for the continued maintenance of the site.

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EXAMPLE 7 (A Sports Club which raises money for charities)

3. The objects of the company are:

a. To promote the sport of ... to people of all ages, and to increase participation in the sport in the local area.

b. To increase awareness and access to the sport for local communities and people of all ages and abilities.

c. To provide safe conditions, equipment, and venues for those participating in, supervising and watching the company's events.

d. To benefit and raise awareness of local charities by raising money at events organised by the company.

Clause 9

All earnings over current expenditure will be donated to charities in the local area.