Constitution Division 7A - New Company
The Division 7A Constitution is our standard proprietary limited company constitution with certain added features, including:
- a built in Division 7A agreement between the company and each director, officer and shareholder of the company. The ATO have confirmed that a Division 7A Constitution meets the criteria set out in section 109N (an agreement in writing prior to the loan being made). This constitution therefore gives the company, its directors, officers and shareholders Division 7A protection
- the Company Loans Schedule of the Constitution provides a complete Division 7A Agreement that can be used by the company and its associates, to accurately and fully document a loan, once the details of that loan become apparent
- a built in Division 974 agreement that any loan made by a shareholder to the company, is a debt interest
- all of the relevant company minutes to effect the replacement of the constitution
Please ensure that you read the terms of the Constitution to make sure that you not only understand them, but also that they meet with your approval. The circumstances of every contract or negotiation are unique, so changes may have to be made.
If the terms and conditions contained in the Constitution do not meet with your approval, they can be easily changed. All that you need do is contact us and arrange for one of our solicitors to make your changes.