Company Incorporation | 1 min read | Last updated on 30 June 2019
During registration of the new company, we may choose to adopt a model constitution or create our own.
Most start-ups choose to adopt the model constitution because creating own constitution is costly. The model constitution can be either the constitution as at the point of registration or whatever version of the constitution that is in force from time to time.
If the latter is chosen, there is no need for companies to amend its constitution whenever changes are made to the model constitution.
In short, the constitution is a legal document that describes the key characteristics of the company, contains the rules and regulations for its governance, describes how its operations will be carried out, and states the rights and responsibilities of the directors, shareholders and company secretary.
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