HybridsA company limited by both shares and by guarantee (also known as a hybrid company) can be structured as a “quasi-trust”. At AAMIL, we provide professional directorship services and shareholders (like trustees under a classic trust) for total control over a hybrid company so that all the financial benefits flow to the guarantor members (like beneficiaries under a classic trust).
Some of the multiple advantages of a hybrid company are listed below :
- Possibility of avoiding inheritance tax and estate duties upon the death of the guarantor member, since the transmission of the latter’s interests will be made without delay and with less formality by the election of a new guarantor member by the directors.
- The rights and obligations attached to the shareholders and to the guarantor members can be specifically spelt out in the Constitution/Memorandum and Articles of Association of the company to suit each individual client’s needs.
- Can be tax exempt or paying low rate of tax, but with access to double taxation agreements.
