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Articles of Association Template for Malaysia

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Articles of Association

I need Articles of Association for a private limited company in Malaysia, outlining the company's objectives, share structure, and management framework, with provisions for appointing directors, conducting meetings, and distributing dividends, ensuring compliance with the Companies Act 2016.

What is an Articles of Association?

Articles of Association spell out the core rules for running a Malaysian company - they're like an internal rulebook that guides how the business operates day-to-day. This document, required under the Companies Act 2016, covers everything from how directors are appointed to how decisions get made at shareholder meetings.

Think of it as your company's internal constitution. It sets clear boundaries on what the company can do, defines the rights of shareholders, and explains how profits are distributed. While you can use standard templates from the Companies Commission of Malaysia (SSM), many businesses customize their Articles to match their specific needs and goals.

When should you use an Articles of Association?

Every new company in Malaysia needs Articles of Association when registering with the Companies Commission (SSM). It's a mandatory document that helps establish your business structure from day one. Companies typically create or update their Articles during key moments: when incorporating, bringing in new shareholders, changing how directors are appointed, or modifying voting rights.

The Articles become especially important during disputes or major company decisions. They provide clear rules for handling shareholder conflicts, director responsibilities, and profit distribution. Many businesses also revise their Articles when expanding operations, restructuring, or adapting to new business models to ensure their governance structure stays relevant.

What are the different types of Articles of Association?

Who should typically use an Articles of Association?

  • Company Directors: Must understand and follow the Articles of Association in daily operations, making decisions within its framework
  • Company Secretaries: Handle drafting, filing, and updating the Articles with SSM, ensuring compliance with Companies Act 2016
  • Shareholders: Rights and obligations defined by the Articles, including voting powers and profit-sharing arrangements
  • Corporate Lawyers: Draft and review Articles, ensuring legal compliance and protecting client interests
  • Company Stakeholders: Including employees, creditors, and business partners who rely on the Articles for understanding company structure

How do you write an Articles of Association?

  • Company Details: Gather basic information including proposed company name, business activities, registered address, and share capital structure
  • Shareholder Information: List all shareholders, their shareholding percentages, and voting rights preferences
  • Board Structure: Decide on number of directors, appointment process, and meeting procedures
  • Business Rules: Define key operational policies, dividend distribution methods, and transfer of shares rules
  • Compliance Check: Use our platform to generate a legally-compliant document that meets SSM requirements while matching your company's needs
  • Review Process: Ensure all stakeholders understand and agree to the provisions before submission

What should be included in an Articles of Association?

  • Company Name and Details: Full registered name, business objectives, and registered office address
  • Share Capital Structure: Types of shares, rights attached, and transfer restrictions
  • Management Provisions: Director appointment procedures, powers, and meeting protocols
  • Shareholder Rights: Voting procedures, dividend policies, and general meeting requirements
  • Dispute Resolution: Clear procedures for handling conflicts and disagreements
  • Amendment Rules: Process for modifying the Articles and special resolution requirements
  • Winding Up: Procedures for company dissolution and asset distribution

What's the difference between an Articles of Association and a Memorandum of Association?

Articles of Association and Memorandum of Association are often mentioned together but serve different purposes in Malaysian company law. While they work as companion documents, understanding their distinct roles is crucial for proper company governance.

  • Internal vs External Focus: Articles handle internal management rules and procedures, while the Memorandum defines the company's relationship with outside parties
  • Scope of Coverage: Articles detail day-to-day operations, shareholder rights, and board procedures; the Memorandum states the company's powers, objectives, and capital structure
  • Modification Process: Articles can be amended through special resolutions with shareholder approval; Memorandum changes often require additional regulatory approval
  • Legal Requirements: Under the Companies Act 2016, both documents are mandatory for incorporation, but serve distinct compliance purposes

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