Khatam Alnabaeen Limited
Charity No. 1168024
Company No. 08404576
Trustees' Report and Unaudited Accounts
29 February 2024
Khatam Alnabaeen Limited Contents
| Pages | ||
|---|---|---|
| Trustees' Annual Report | 2 to 4 | |
| Independent Examiner's Report | 5 | |
| Statement of Financial Activities | 6 | |
| Summary Income and Expenditure Account | 7 | |
| Balance Sheet | 8 | |
| Statement of Cash flows | 9 | |
| Notes to the Accounts | 10 to | 17 |
Page 1
Khatam Alnabaeen Limited Trustees Annual Report
The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 29 February 2024.
REFERENCE AND ADMINISTRATIVE DETAILS
Company No. 08404576
Charity No. 1168024
Principal Office
Unit 6 Wellesly Court Apsley Way London NW2 7HF
Registered Office
Suite G1 Harstbourne House Delta Gain Watford WD19 5EF
Directors and Trustees
The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:
S.F. Hosseini-Milani (Resigned 2 September 2024) M.E. Mesbahi S.E. Shahrestani
Accountants
Sabat Accountants Ltd t/a Seymour King Suite G1 Hartsbourne House Delta Gain Watford WD19 5EF
OBJECTIVES AND ACTIVITIES
The purpose of the charity is promotion of racial and religious harmony through education. In shaping our objectives and activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.
The activities undertaken by the charity to promote its objectives and aims are stated below.
The activities undertaken by the charity to promote its objectives and aims are as follows;
1- Theology Courses
2- Mental Health Courses
3- Conferences
Page 2
Khatam Alnabaeen Limited Trustees Annual Report
-
4- Inter-faith and intra-faith conferences
-
5- Round table weekend discussions
ACHIEVEMENTS AND PERFORMANCE
-
Theology Course: Term one started on 6th March 2023 and continued until 4th August 2023. The second term began on the 18th September 2023 and was concluded on the 1st March 2024.
-
Successful Marriage courses: these are series of courses run periodically in order to facilitate an environment for couples who have are in the first 5 years of their relationship and also the ones who are thinking of starting a relationship.
-
12 weeks course on contemporary issues starting on 16th October 2023. The subjects covered included: Crypto-currency, Insurance and Assurance, Assisted dying, Gender related matters and many more.
-
After a previously proven success, for the second year, series of Mental Health Courses where administered covering:
-
The preachers, improvising them with the most updated scientific and social approaches to contemporary matters.
-
The general members of the community, involving workshops and discussion in order to bring better understanding of the mental health issues surrounding them and their loved ones.
-
Also covering the topic of losing a dear family member.
-
As an annual event, in co-ordination with the Centre for Muslim-Christian Studies in Oxford, a full summer break course of interfaith and intra-faith has been organised and managed.
FINANCIAL REVIEW
During the year under review the charity received unrestricted income of £27,000 (2023: £82,170) and restricted income of £45,292 (2023: £50,855) and had an expenditure of £95,856 (2023: £107,494) and £10,420 (2023: £30,941) for unrestricted and restricted expenditure respectively. At the balance sheet date the charity held unrestricted and restricted funds of £314,549 (2023: £381,655) and £187,685 (2023: £152,813) respectively.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months running costs. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds maybe raised. Based on this policy the reserves to be held are between £23,800 and £47,500. At the end of the year, the charity had unrestricted reserve fund of £314,549.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is a company limited by guarantee and is controlled by its Memorandum and Articles of Association dated 15 February 2013 as amended by special resolution dated 19 February 2016 and 27 June 2016.
The charity may appoint any person who is willing to become a director/trustee.
Statement of Trustees' Responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the applicable law and United Kingdom's accounting standards (United Kingdom's generally accepted accounting practice).
Page 3
Khatam Alnabaeen Limited Trustees Annual Report
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of affairs of the charity and of incoming resources and the application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:
-
Select suitable Accounting policies and apply them consistently;
-
Observe the methods and principles in the Charities Statement of Recommended Practice;
-
Make judgements and estimates that are reasonable and prudent;
-
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
Prepare the financial statements on the going concern basis unless its inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).
Signed on behalf of the board
M.E. Mesbahi Trustee 25 November 2024
Page 4
Khatam Alnabaeen Limited Independent Examiners Report
Independent Examiner's Report to the trustees of Khatam Alnabaeen Limited
I report to the charity trustees on my examination of the financial statements of Khatam Alnabaeen Limited for the year ended 29 February 2024.
Responsibilities and basis of report
As the charity's trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in accordance with section 386 of the 2006 Act ; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements under section 396 of the 2006 Act other than any requirement that the financial statements give a 'true and fair' view which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sajjad B Tejani FCCA Sabat Accountants Ltd t/a Seymour King Suite G1
Hartsbourne House Delta Gain Watford WD19 5EF 25 November 2024
Page 5
Khatam Alnabaeen Limited Statement of Financial Activities
for the year ended 29 February 2024
| Notes Income and endowments from: Donations and legacies 4 Investments 5 Other 6 Total Expenditure on: Charitable activities 7 Other 8 Total Net gains on investments Net expenditure 9 Transfers between funds Net expenditure before other gains/(losses) Other gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2024 £ 27,000 - 1,750 |
Restricted funds 2024 £ 45,292 - - |
Total funds 2024 £ 72,292 - 1,750 |
Total funds 2023 £ 127,226 149 5,650 |
|---|---|---|---|---|
| 28,750 848 95,008 |
45,292 10,420 - |
74,042 11,268 95,008 |
133,025 31,191 117,244 |
|
| 95,856 - |
10,420 - |
106,276 - |
148,435 - |
|
| (67,106) - |
34,872 - |
(32,234) - |
(15,410) - |
|
| (67,106) | 34,872 | (32,234) | (15,410) | |
| (67,106) 381,655 |
34,872 152,813 |
(32,234) 534,468 |
(15,410) 549,878 |
|
| 314,549 | 187,685 | 502,234 | 534,468 |
Page 6
Khatam Alnabaeen Limited Summary Income and Expenditure Account
for the year ended 29 February 2024
| Income Interest and investment income Gross income for the year Expenditure Depreciation and charges for impairment of fixed assets Total expenditure for the year Net expenditure before tax for the year Net expenditure for the year |
2024 £ 74,042 - 74,042 91,889 14,387 106,276 (32,234) (32,234) |
2023 £ 132,876 149 |
|---|---|---|
| 133,025 | ||
| 134,086 14,349 |
||
| 148,435 | ||
| (15,410) | ||
| (15,410) |
Page 7
Khatam Alnabaeen Limited Balance Sheet
at 29 February 2024
| Company No. 08404576 Notes 2024 £ Fixed assets Tangible assets 12 617,340 617,340 Current assets Debtors 13 2,739 Cash at bank and in hand 15,315 18,054 Creditors:Amount falling due within one year 14 (2,660) Net current assets 15,394 Total assets less current liabilities 632,734 Creditors:Amounts falling due after more than one year 15 (130,500) Net assets excluding pension asset or liability 502,234 Total net assets 502,234 The funds of the charity Restricted funds 16 Restricted income funds 187,685 187,685 Unrestricted funds 16 General funds 314,549 314,549 Reserves 16 Total funds 502,234 |
2023 £ 631,727 |
|---|---|
| 631,727 7,543 28,880 |
|
| 36,423 (3,182) |
|
| 33,241 664,968 (130,500) |
|
| 534,468 | |
| 534,468 | |
| 152,813 | |
| 152,813 381,655 |
|
| 381,655 | |
| 534,468 |
These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
For the year ended 29 February 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
Approved by the board on 25 November 2024
And signed on its behalf by:
M.E. Mesbahi Trustee
25 November 2024
Page 8
Khatam Alnabaeen Limited Statement of Cash flows for the year ended 29 February 2024
| Cash flows from operating activities Net expenditure per Statement of Financial Activities Adjustments for: Depreciation of property, plant and equipment Dividends, interest and rents from investments Decrease/(Increase) in trade and other receivables (Decrease)/Increase in trade and other payables Net cash used in operating activities Cash flows from investing activities Dividends, interest and rents from investments Net cash from investing activities Net cash from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Components of cash and cash equivalents Cash and bank balances |
2024 £ (32,234) 14,387 (1,750) 4,804 (522) (15,315) 1,750 1,750 - (13,565) 28,880 15,315 15,315 15,315 |
2023 £ (15,410) 14,349 (5,799) (6,351) 69 |
|---|---|---|
| (13,142) 5,799 |
||
| 5,799 | ||
| 2,000 | ||
| (5,343) | ||
| 34,223 | ||
| 28,880 | ||
| 28,880 | ||
| 28,880 |
Page 9
Khatam Alnabaeen Limited Notes to the Accounts
for the year ended 29 February 2024
- 1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
-
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
-
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
-
Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
-
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
-
Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
-
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets
Page 10
Khatam Alnabaeen Limited Notes to the Accounts
Expenditure
-
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates.
-
Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs.
-
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
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Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Freehold property 2%% on cost
Fixture, fittings & equipment 20%% on cost
==> picture [207 x 47] intentionally omitted <==
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 11
Khatam Alnabaeen Limited Notes to the Accounts
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
2 Company status
The company is a private company limited by guarantee and consequently does not have share capital.
3 Statement of Financial Activities - prior year
| Income and endowments from: Donations and legacies Investments Other Total Expenditure on: Charitable activities Other Total Net income Net income before other gains/(losses) Other gains and losses: Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds 2023 £ 76,371 149 5,650 82,170 250 117,244 117,494 (35,324) (35,324) (35,324) 416,979 381,655 |
Restricted funds 2023 £ 50,855 - - 50,855 30,941 - 30,941 19,914 19,914 19,914 132,899 152,813 |
Total funds 2023 £ 127,226 149 5,650 |
|---|---|---|---|
| 133,025 31,191 117,244 |
|||
| 148,435 | |||
| (15,410) | |||
| (15,410) | |||
| (15,410) 549,878 |
|||
| 534,468 |
Page 12
Khatam Alnabaeen Limited
Notes to the Accounts
4 Income from donations and legacies
| General donation Khums - Sehme Imam and Sehme Sadaat Education Healthcare 5 Income from investments Interest receivable 6 Other income Gift Aid 7 Expenditure on charitable activities Expenditure on charitable activities Education General donation Governance costs |
Unrestricted £ 27,000 - - - 27,000 Unrestricted £ - 848 848 |
Restricted £ - 4,292 35,500 5,500 45,292 Unrestricted £ 1,750 1,750 |
Total 2024 £ 27,000 4,292 35,500 5,500 72,292 Total 2024 £ - - Total 2024 £ 1,750 1,750 |
Total 2023 £ 76,371 - 50,855 - |
|---|---|---|---|---|
| 127,226 | ||||
| Total 2023 £ 149 |
||||
| 149 | ||||
| Total 2023 £ 5,650 |
||||
| 5,650 | ||||
| Restricted £ 10,420 - 10,420 |
Total 2024 £ 10,420 848 11,268 |
Total 2023 £ 30,941 250 |
||
| 31,191 |
Page 13
Khatam Alnabaeen Limited Notes to the Accounts
8 Other expenditure
| 8 | Other expenditure | ||||
|---|---|---|---|---|---|
| Unrestricted | Total | Total | |||
| 2024 | 2023 | ||||
| £ | £ | £ | |||
| Employee costs | 50,137 | 50,137 | 75,327 | ||
| Motor and travel costs | - | - | 204 | ||
| Premises costs | 10,628 | 10,628 | 9,072 | ||
| Amortisation, depreciation, | |||||
| impairment, profit/loss on | 14,387 | 14,387 | 14,349 | ||
| disposal of fixed assets | |||||
| General administrative costs | 18,056 | 18,056 | 16,492 | ||
| Legal and professional costs | 1,800 | 1,800 | 1,800 | ||
| 95,008 | 95,008 | 117,244 | |||
| 9 | Net expenditure before transfers | ||||
| 2024 | 2023 | ||||
| This is stated after charging: | £ | £ | |||
| Depreciation of owned fixed assets | 14,387 | 14,349 | |||
| Independent Examiner's fee | 1,800 | 1,800 | |||
| 10 | Trustee remuneration and expenses | ||||
| 2024 | 2023 | ||||
| Number | Number | ||||
| The nature of the reimbursed expenses | There was no trustees' remuneration or other benefits for | ||||
| the year ended 28 | February 2024 nor for the year ended | ||||
| 28 February 2023. |
11 Staff costs
| Salaries and wages Pension costs No employee received emoluments in excess of £60,000. |
2024 49,120 1,017 50,137 |
2023 73,830 1,497 |
|---|---|---|
| 75,327 | ||
The average monthly number of full time equivalent employees during the year was as follows:
| Administration | 2024 Number 2 2 |
2023 Number 4 |
|---|---|---|
| 4 |
Page 14
Khatam Alnabaeen Limited Notes to the Accounts
12 Tangible fixed assets
| Cost or revaluation At 1 March 2023 At 29 February 2024 Depreciation and impairment At 1 March 2023 Depreciation charge for the year At 29 February 2024 Net book values At 29 February 2024 At 28 February 2023 13 Debtors Other debtors Prepayments and accrued income 14 Creditors: amounts falling due within one year Trade creditors Other taxes and social security Other creditors Accruals |
Land and buildings £ 686,332 686,332 62,618 9,227 71,845 614,487 623,714 2024 £ 1,750 989 2,739 2024 £ 130 621 109 1,800 2,660 |
Fixture, fittings & equipment £ 28,079 28,079 20,066 5,160 25,226 2,853 8,013 |
Total £ 714,411 |
|---|---|---|---|
| 714,411 | |||
| 82,684 14,387 |
|||
| 97,071 | |||
| 617,340 | |||
| 631,727 | |||
| 2023 £ 6,090 1,453 |
|||
| 7,543 | |||
| 2023 £ 122 913 347 1,800 |
|||
| 3,182 |
Page 15
Khatam Alnabaeen Limited Notes to the Accounts
15 Creditors:
| Creditors: | ||
|---|---|---|
| amounts falling due after more than one year Other loans Liabilities repayable in more than five years after the balance sheet date Amount repayable other than by instalments |
2024 £ 130,500 130,500 130,500 130,500 |
2023 £ 130,500 |
| 130,500 | ||
| 130,500 | ||
| 130,500 |
Included in the creditors falling due after more than one year is an amount of £103,500 (2023: £103,500) due to a trustee. The loan is interest free and no guarantees have been provided.
Page 16
Khatam Alnabaeen Limited Notes to the Accounts
16 Movement in funds
| 16 Movement in funds | ||||
|---|---|---|---|---|
| Restricted funds: Restricted income funds: Khums - Sehme Imam and Sadaat Sadaqah Khums - Sehme Imam Education Orphans Healthcare Total Unrestricted funds: General funds Total funds |
At 1 March 2023 8,252 1,588 11,779 129,423 1,771 - 152,813 381,655 534,468 |
Incoming resources (including other gains/losses) £ 4,292 - - 35,500 - 5,500 45,292 28,750 74,042 |
Resources expended £ - - - (10,420) - - (10,420) (95,856) (106,276) |
At 29 February 2024 £ 12,544 1,588 11,779 154,503 1,771 5,500 |
| 187,685 | ||||
| 314,549 | ||||
| 502,234 |
Purposes and restrictions in relation to the funds:
Restricted funds: Khums - Sehme Imam and Funds received as obligatory religious payments, to be utilised in Sadaat accordance to the teachings of the Islamic faith and at the discretion of the trustees. Sadaqah Donations received to be used for the poor and the needy. Khums - Sehme Imam Funds received as obligatory religious payments, to be utilised in accordance to the teachings of the Islamic faith and at the discretion of the trustees. Education Funds received as obligatory religious payments, to be utilised in accordance to the teachings of the Islamic faith and at the discretion of the trustees. Orphans This fund is used for the general well being of the orphans. Healthcare This fund is used for those in need of medical assistance and at the discretion of the trustees.
Page 17
Khatam Alnabaeen Limited
Notes to the Accounts
17 Analysis of net assets between funds
| Fixed assets Net current assets Creditors due in more than one year and provisions Reconciliation of net debt Cash and cash equivalents Borrowings Net debt |
Unrestricted funds £ 617,340 79 (130,500) 486,919 At 1 March 2023 £ |
Restricted funds £ - 15,315 - 15,315 Cash flows £ |
Total £ 617,340 15,394 (130,500) |
|---|---|---|---|
| 502,234 | |||
| At 29 February 2024 £ |
|||
| 28,880 | (13,565) | 15,315 | |
| 28,880 (130,500) (130,500) (101,620) |
(13,565) - - (13,565) |
15,315 (130,500) |
|
| (130,500) | |||
| (115,185) |
18 Reconciliation of net debt
19 Commitments
Operating lease commitments
Annual commitments under non-cancellable operating leases are as follows:
| 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|
| Land and buildings |
Other | Land and buildings |
Other | |
| £ | £ | £ | £ | |
| Operating leases with expiry date: | ||||
| Pension commitments | ||||
| 2024 | 2023 | |||
| £ | £ | |||
| The pension cost charge to the company | ||||
| amounted to: | 1,017 | 1,497 |
20 Related party disclosures
Controlling party
The company is limited by guarantee and has no share capital; thus no single party controls the company.
Page 18