Asset lock

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A provision in the governing document of an entity that prevents, or otherwise restricts, the assets of a company from being used for private gain, rather than for community benefit or the stated purposes of the organisation (see “mission lock”). An asset lock is mandatory and in a prescribed form in a Community Interest Company, but asset locks can also be included in, and tailored for, the constitutions of other corporate structures (such as a company limited by shares or guarantee).

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