This is a company limited by both shares and guarantee. This provides great flexibility in the financing and distribution of profits within the company.
The shares are issued on terms that each carries one vote but no rights to dividends or to participate in the income of the company. The guarantee memberships are issued on terms that they carry no right to vote but all rights to participate in the income and capital of the company. Thus all control rests with the shareholders but all benefits flow to the guarantee members. The different rights and obligations that attach to each class of membership can be arranged to create structures that are precisely tailored to the different needs of the client.
Taxation of a hybrid company can take the form of GBC1 or GBC2. The advantages of this kind of company in Mauritius include: confidentiality since there’s minimum disclosure requirements, tailor made structures for the clientele involved, transmission of assess upon death and no ownership or control.