A Record of Accounts must be maintained each year and certain amendments to the Governing Instrument must be cleared in advance with the Revenue Commissioners. The contact address is: Office of the Revenue Commissioners Charities Section Government Offices Nenagh Co. Tipperary Tel: 067-33533 or LoCall 1890 254565 E-mail: charities@revenue.ie
LEGAL STRUCTURES AND LEGAL STATUS Especially at the start-up stage, it is important for the member(s) of a group to consider whether the organisation needs to have legal status and what structure is most appropriate for future as well as present activities. Every organisation needs a structure in order to work properly; it usually sets out basic rules and relationships and makes an organisation more efficient. There is a difference between a legal structure (e.g. constitution, limited companies, trusts) and legal status (e.g. charitable status) and not all kinds of legal structures provide separate legal status for a group's members. A group that only has a constitution, for example, has a legal structure but does not enjoy separate legal status from its members, however, it can sue and be sued and its members are still bound by the rules of the group's constitution. When an organisation becomes an incorporated body, like a company, the company takes on separate legal status from its members. An organisation may want a certain type of legal status for various reasons, e.g. to employ staff, to acquire property, or to offer members protection against certain liabilities. In addition, a funding organisation may require a group to have formal legal structures, or legal status. For further information legal structures and legal status visit www.comhairle.ie COMPANY LIMITED BY GUARANTEE Basically, under legal structures and limited companies there are two types of companies, a private company and a public company (company limited by Guarantee). A private limited company can have one shareholder but must have at least two directors. The liability of the shareholder (s) is limited to the amount unpaid on the shares held by him / her. A company limited by guarantee is a legal structure for non-profit making organisations such as community and voluntary groups. It gives the organisation a legal identity, which is separate from that of the individual members and all profits are reinvested in the company. With this form of company there must be at least seven members (subscribers). A guarantee company does not have a share capital, and members are not required to buy shares. The member’s liability is limited to the amount they contribute to the assets of the company. 8