Corporations and their Governance

TRCompanies formed after 1 July 1998 can have a simple set of rules known as “a Constitution” in place of what was previously called “Memorandum and Articles of Association”.

If a proprietary company does not adopt a Constitution, they will be automatically governed by the Replaceable Rules as outlined in the Corporations Act 2001.

Most companies have a Constitution which is drawn up prior to the registration of the company. The Constitution has the effect of a contract between:

  • the company and each shareholder;
  • the company and each director;
  • the company and the company’s secretary;
  • a shareholder and each other shareholder.
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