You are working in a secretarial firm. One of your clients, Jessica intends to set up a private

limited company under Companies Act 2016. Jessica would like to seek your advice whether or not the

company shall adopt a company's constitution.

Jessica has provided you with the following information:

The company is a joint venture company with two shareholders, Ali Sdn. Bhd. and

Grow Sdn. Bhd.

Ali Sdn. Bhd. will hold 49% shares whereas Grow Sdn. Bhd. will hold 51% shares in

the company.

Advise Jessica accordingly.

Note to students:

Your answer shall consist:

Three (3) reasons based on section(s) in the Companies Act 2016 to support your advice.

Need under Malaysia Corporate Law, Companies Act 2016