Commonwealth Games Federation President Louise Martin claimed the movement is now in a stronger position after a proposal to incorporate as a private company limited by guarantee in the UK ©CGF

A proposal for the Commonwealth Games Federation (CGF) to be incorporated as a private company limited by guarantee in the United Kingdom was passed unanimously here today.

It took less than 15 minutes at the General Assembly for the proposal to be adopted by 66 votes to none against. 

"The 2015 CGF General Assembly gave the Federation a unanimous mandate to incorporate as a UK company in line with the governance and management principles outlined in Transformation 2022," Louise Martin, the President of the CGF, said. 

"Today, we took the significant step towards this destination as our members voted to dissolve the existing unincorporated association and to incorporate a new company as a company limited by guarantee.

"This places the Commonwealth Sports Movement on firmer, more transparent and more strategic foundations upon which we can build a dynamic and ambitious transformation agenda. 

"The incorporation model adopted preserves the existing Constitution as closely as possible; and any changes have been made or new provisions introduced only to the extent necessary to comply with UK Law and specifically the UK Companies Act.

"Today’s important decision ensures that we preserve the best of our rich heritage as diverse family of sporting nations, while at the same time allowing us to embrace best practices in governance and corporate law."

Such a set-up is an alternative type of corporation used primarily for non-profit organisations that require legal personality. 

A company limited by guarantee does not usually have a share capital or shareholders, but instead has members who act as guarantors.

Until now, the CGF has been a non-registered not for profit association.

The Commonwealth Games Federation are due to move next month into new offices in London which were opened by the Queen earlier this year ©Getty Images
The Commonwealth Games Federation are due to move next month into new offices in London which were opened by the Queen earlier this year ©Getty Images

The decision ensures the future of the CGF in the UK.

Former CGF President Tunku Imran dropped controversial plans in 2014 to relocate the offices from London to Kuala Lumpur following protests from several countries, particularly those from Africa. 

Several sports governing bodies based in the UK are already a private company limited by guarantee, including the PGA European Tour.

The new CGF company will have a charity subsidiary, the Commonwealth Sports Foundation, which will be its development arm. 

Currently, 68 per cent of the CGF's budget goes on development, including helping support countries prepare for the Commonwealth Games.

The CGF is also due to officially move into the offices of the newly named Commonwealth House on Pall Mall in London on November 1. 

They are currently located at CAN Mezzanine in Old Street in Shoreditch in London. 

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