According to section 9 (1) (b) of the Companies Act 2015, a company limited by guarantee cannot be a private company. Further, under section 7 (1) (a) of the Act such a company cannot have a share capital. This contrasts with the position under the repealed Companies Act which allowed a private company to be limited by guarantee and further to have a share capital. However it is worth noting that, under the new Companies Act, a company registered before commencement of the Act as a company limited by guarantee but having a share capital is not prohibited.

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