Who owns a Non-Profit Company, and what happens to its money and property? #
A Non-Profit Company (NPC) is not owned by its directors, founders or congregation members as private property. The NPC is a separate legal entity, and its money and assets belong to the company.
What must the NPC use its assets for? #
The NPC must use its income and property to advance the purposes recorded in its Memorandum of Incorporation (MOI). The MOI is its founding document.
Directors cannot divide surplus money among themselves merely because the NPC had a successful year. A founder cannot take equipment back merely because that person originally helped establish the organisation.
Can the NPC make legitimate payments? #
Yes. It may make reasonable payments for genuine goods or services, reimburse genuine expenses, pay amounts due under valid agreements and meet legal obligations.
The payment must be real and properly connected with the company’s work or obligations. It must not be a disguised private distribution.
What happens if the NPC closes? #
After debts and obligations have been settled, the remaining net value cannot be distributed to past or present directors or members.
The remaining assets must go to an eligible non-profit company, qualifying external non-profit company, voluntary association or non-profit trust with similar purposes, as determined under the MOI and the Companies Act.
What about assets the ministry had before incorporation? #
Do not assume that incorporation automatically transfers existing money, equipment, property, contracts or debts into the new NPC.
Ownership and transfer depend on the facts and the relevant documents. If the ministry already has significant assets, property, employees, contracts or liabilities, use Start My Company Support before proceeding and obtain professional advice where needed.
Related articles #
Last checked against official information: 31 August 2026
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