The BBA is often referred to as a not-for-profit company or charity, which is not the case. The BBA is a ‘company limited by guarantee’ – an ownership structure that is somewhat unusual but not uncommon in the UK, Ireland or Australia. It can be used for not-for-profit organisations, such as sports clubs and membership organisations or indeed for profit-focused organisations, such as the BBA.
A company limited by guarantee differs from a company limited by shares, since shares are owned by people and/or institutions (like pension funds) and the profits are distributed to shareholders.
The BBA, or indeed other companies limited by guarantee, does not have any shareholders and does not distribute profits. Instead, the profits made by the BBA are to be used for the benefit of the construction industry or the public good. It is for the Governing Board to decide how, when and where these profits are distributed.
