Company Constitutions

company constitutionsThe fundamental rules of a company are set out in its constitution. A company’s constitution operates much in the same way that a national constitution sets out the fundamental rules in which a country is to operate. Aside from setting out the fundamental rules for the operation of the company, the company constitution also sets out how decisions are to be made, how shareholder meetings, are to be conducted, and how Directors are able to exercise their powers.

Company Constitution and Business Structure

As such, it is, of course, vital to retain an experienced solicitor to assist in drafting such an important document to ensure it is given proper consideration from the outset.Continuing the analogy of a country’s constitution, it is often remarked as to how difficult it is to change the Australian constitution, to the point that amendments are time-consuming, costly and divert limited resources away from more pertinent activities. By the same logic, when a company grows, and shareholders preponderate, amending the company constitution can become extremely difficult – so it is important that the document is given proper consideration and drafted correctly from the outset.

Forge Legal is well placed to work with you for designing and implementing Company Constitutions. Whether you wish to float a company on the share market or expand your platform of private investors, our dedicated contracts team will get the necessary paperwork together to get your business to where you want it to be.

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