'Not-for-Profit' Motivation in a 'For-Profit' Company Law Regime - National Baseline Data

Abstract

This article reports the findings of a recent survey of Australian companies limited by guarantee (a company structure used by not-for-profit organisations). This survey has, for the first time, collected national, large-scale profile data on this group of companies. This data provides a solid baseline for future Australian law reform and comparison. Understanding this data is a necessary first step in considering the particular (and often overlooked) needs of not-for-profit companies. Three key questions are explored in relation to the data - (1) why is a company limited by guarantee chosen as the legal structure rather than, say, an incorporated association and has it been suitable for these not-for-profit organisations? (recent reform proposals from the United Kingdom relevant to not-for-profit legal structures are considered) (2) what information should be available to the public and other stakeholders about these organisations? and (3) who is the most appropriate regulator for this group?

JEL Classification: K2, K22