Readers' forum: New incorporation

The members of a company limited by guarantee are employed by a branch of the emergency services. The company runs training and conferences which only its members are eligible to attend. Attendance fees are invoiced to the members’ employers rather than to the members themselves.

Before the company was formed the same activities were carried out by an unincorporated body which did not prepare tax returns or pay corporation tax. When the new company was formed it took over the activities of the old body and received a significant transfer of funds of which half was a grant received from a third party to assist with the incorporation and the other half was retained surpluses.

The articles of association state that the objects of the company are to promote aid and further the purposes of its members’ profession and provide support. Its income and property must be...