{"id":1929,"date":"2020-12-22T15:02:25","date_gmt":"2020-12-22T05:02:25","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=1929"},"modified":"2024-12-11T16:24:37","modified_gmt":"2024-12-11T03:24:37","slug":"what-is-a-company-constitution","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/what-is-a-company-constitution\/","title":{"rendered":"What is a Company Constitution?"},"content":{"rendered":"\n

A company constitution is a document that contains a set of rules on how a company will be governed. Although it is not a legal requirement that a private company<\/a> must <\/span>have t<\/span>his document, it is very common for companies to adopt company constitutions. Likewise, there are substantial benefits to doing so. This article explains what a company constitution is, the benefits of having o<\/span>ne, and the process and approvals required to adopt, amend or revoke t<\/span>he document.<\/span><\/p>\n\n\n

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Corporate Governance Guide for SMEs in NZ<\/div>\n
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Download our free guide to understand your corporate governance responsibilities.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Do You Need a Company Constitution?<\/span><\/h2>\n\n\n\n

Your decision to adopt a constitution may depend on your <\/span>company\u2019s structure<\/span><\/a>. A private company in New Zealand does not require t<\/span>his document. H<\/span>ence, it is possible to incorporate your company without having s<\/span>uch a document in place. C<\/span>onsequently, you can choose to adopt o<\/span>ne later on. <\/span><\/p>\n\n\n\n

Further, if your company does not have a constitution, then the Companies Act 1993 (NZ) rules apply by default.<\/span><\/p>\n\n\n\n

What is Contained in a Company Constitution?<\/span><\/h2>\n\n\n\n

T<\/span>his legal document sets out essential matters relating to the governance of the company. This can include:<\/span><\/p>\n\n\n\n