Companies Act 2014 section 1182

Capacity of a CLG

Section 1182 sets out the legal capacity of a Company Limited by Guarantee (CLG) to carry out activities, confirming that its capacity is defined and limited by the objects stated in its memorandum.

• A CLG has the capacity to do anything stated in the objects set out in its memorandum of association.
• References to "objects" in the memorandum include anything described as a power to act, whether or not the word "power" is actually used.
• Where an object is stated without further detail, the CLG may also do anything it considers necessary, beneficial, or incidental to achieving that object, provided it does not conflict with any legislation.
• Unlike a private company limited by shares (LTD), which enjoys unlimited capacity under the Act, a CLG's capacity is restricted to what is set out in its memorandum.