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Has HMC now become a business due to it acquiring the status of a Limited Company?
Historically HMC was an unincorporated association running as a not for profit organisation and the not for profit element is still in place.
If a legal issue were to arise from the local authority, Inland Revenue, or another body matters can be directed at an individual or individuals. That is an unsatisfactory situation as it places not only those directly working for HMC at risk but also it’s members. We could not let a situation arise where an issue regarding VAT, Council Tax or any other matter that could be directly aimed at individuals.
In order to secure this, HMC has now achieved a ‘Company Limited by Guarantee’ status. What this means is that the organisation will continue to serve the Ummah on a not for profit basis. However, it will now have protection under a limited status whereby if a liability does fall on HMC by a local authority or any other organisation, that liability will be limited to just £1.00.