Can You Write Your Own Company Constitution? Most People Don’t Know This!-FOZL

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Can You Write Your Own Company Constitution? Most People Don’t Know This!

When registering a company in Malaysia, most people focus on names, shareholders, and directors —
but there’s one crucial element often overlooked: the Company Constitution.

Two options: Standard template or custom version?
Under the Companies Act 2016, you can choose between:
1. Using the SSM Standard Constitution

Provided by the Companies Commission of Malaysia
Suitable for simple setups and early-stage businesses
Faster to register, no need for additional drafting

2. Submitting a Custom Constitution

Allows you to define dividend structures, voting rights, director powers, etc.
Ideal for companies with multiple shareholders, external investors, or unique arrangements
Must fully comply with the Companies Act 2016 and be reviewed by SSM

Why should you plan your Constitution early?
Many companies go with the standard version to save time.
But later — during expansion, investment rounds, or shareholder changes — they find the default clauses inadequate.
We’ve seen companies fall into major disputes over dividend rights or voting power simply because the Constitution didn’t cover the necessary terms.

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