A CLG is a separate legal entity. It is a company and is separate from the members of the company. As a legal entity, it can be sued and sue, enter into contractual agreements and own properties in its name. As it is limited by guarantee, the liability of the members is limited by the Constitution of the company to the amount that the members agree to undertake to contribute to the assets of the company in the event that it is wound up. This guaranteed amount is usually nominal. Most CLGs set the amount per member to $1.