Public Company Constitution – Establish a Clear Corporate Governance Framework

A Public Constitution Agreement serves as a foundational document that ensures transparent, accountable, and effective governance within an organisation or entity.

By clearly defining the roles, responsibilities, and processes, it helps to prevent misunderstandings and disputes, fostering a collaborative and well-functioning organisation.

Both parties should carefully review and negotiate the terms to ensure that their interests are adequately protected and that the entity operates smoothly

Which companies need a constitution?

The following companies must be governed by a constitution:

• ‘No Liability’ public companies
• ‘special purpose companies’ that want a reduced annual review fee.

A proprietary company (that is a special purpose company) must have a constitution.  It doesn’t need to be lodged with us, but a copy must be kept with the company’s records.

Proprietary’ means ‘private’, and is the most popular for small businesses, to hold investments and to act as a trustee for private trusts. The ‘Pty Ltd’ stands for ‘Proprietary Limited’, and is the most common form of company.

Provides for:

1.      A single Director and single Secretary, or

2.      Board of Directors with a Secretary;

3.      Shareholders holding one Class of share;

4.      Limited Liability

The Constitution for this Company needs to be retained with the Company Records.

Fully formatted in Microsoft word, ready to download edit and use.

Approximatley 48 pages long and includes gst