Non-Profit Companies: A Contradiction or a Practical Tool?
When one thinks of a company, trading activities and profit-making typically come to mind, with dividends eventually distributed to shareholders. The trading “purposes” of a company are in its Memorandum and Articles of Association and while the Companies Act allows companies to be established for any lawful purpose, it is unusual for a company’s purpose to focus solely on the public good rather than the financial benefit of its stakeholders—whether shareholders, employees, creditors, or others.
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Authors: Christine Borg & Rebecca Micallef
