An asset lock is a legal clause that prevents the
asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...
s of a
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of legal people, whether Natural person, natural, Juridical person, juridical or a mixture of both, with a specific objective. Company members ...
from being used for private gain rather than the stated purposes of the
organisation
An organization or organisation ( Commonwealth English; see spelling differences) is an entity—such as a company, or corporation or an institution ( formal organization), or an association—comprising one or more people and having a pa ...
. Asset locks may be incorporated into the formal structure of a "bencom" (a type of
industrial and provident society
An industrial and provident society (IPS) is a body corporate registered for carrying on any industries, businesses, or trades specified in or authorised by its rules.
The members of a society benefit from the protection of limited liability ...
),
community interest company
A community interest company (CIC, pronounced "see-eye-see", or colloquially, "kick") is a form of social enterprise in the United Kingdom intended "for people wishing to establish businesses which trade with a social purpose..., or to carry on ...
, or
charitable organisation
A charitable organization or charity is an organization whose primary objectives are philanthropy and social well-being (e.g. educational, Religion, religious or other activities serving the public interest or common good).
The legal definitio ...
.
Corporate law
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