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An Operating Agreement spells out how business partners will run their company together in Malaysia. It sets clear rules about who owns what percentage, how decisions get made, and what happens if someone wants to leave the business or sell their share.

Malaysian companies, especially private limited ones (Sdn Bhd), use these agreements to prevent future disputes and align with the Companies Act 2016. While not legally required, a well-crafted Operating Agreement protects all owners by covering profit sharing, management roles, and exit strategies. Think of it as your company's internal rulebook that keeps everyone on the same page.

Create an Operating Agreement right when you start a new business partnership in Malaysia, especially for Sdn Bhd companies with multiple shareholders. This timing lets you set clear rules before money starts flowing and complex decisions need making.

Update your Operating Agreement when bringing in new partners, changing ownership percentages, or shifting how profits get divided. Many Malaysian businesses also revise their agreements during major transitions like expanding operations, adding new business lines, or preparing for generational handovers. Having these rules documented early prevents costly disputes and keeps your company compliant with local regulations.

• Limited Liability Operating Agreement: Standard version for multi-member companies, detailing profit sharing and liability protection
• Management Operating Agreement: Focuses on detailed management structures and decision-making processes
• Manager Managed Operating Agreement: Separates ownership from day-to-day management duties
• Real Estate LLC Operating Agreement: Specialized for property investment companies with specific asset management rules
• Limited Liability Company Operating Agreement Single Member: Simplified version for sole proprietors seeking liability protection

• Business Partners/Shareholders: Primary stakeholders who sign and follow the Operating Agreement's terms for ownership, profit sharing, and decision-making rights in Malaysian Sdn Bhd companies
• Company Directors: Oversee compliance with the agreement and ensure its terms align with the Companies Act 2016
• Corporate Lawyers: Draft and review agreements to protect all parties' interests and ensure legal compliance
• Company Secretary: Maintains the agreement as part of official company records and updates it when changes occur
• Business Managers: Execute day-to-day operations according to the agreement's management structure and protocols

• Company Details: Gather registration numbers, business address, and ownership percentages for all partners
• Management Structure: Define roles, voting rights, and decision-making processes aligned with Malaysian corporate law
• Financial Terms: Document capital contributions, profit-sharing ratios, and distribution schedules
• Exit Strategies: Plan procedures for partner departures, share transfers, and company dissolution
• Compliance Check: Review against Companies Act 2016 requirements and local business regulations
• Documentation: Our platform generates custom Operating Agreements that include all required elements, ensuring legal compliance while saving time and reducing errors

• Company Information: Full legal name, registration number, registered address, and business nature
• Ownership Structure: Member details, capital contributions, and shareholding percentages
• Management Provisions: Decision-making processes, voting rights, and meeting procedures
• Financial Terms: Profit distribution, loss allocation, and accounting methods
• Transfer Restrictions: Rules for selling shares and admitting new members
• Dispute Resolution: Mediation and arbitration procedures under Malaysian law
• Dissolution Terms: Procedures for winding up and asset distribution
• Compliance Notice: Our platform automatically includes all these essential elements in every Operating Agreement, ensuring legal validity under Malaysian law

An Operating Agreement differs significantly from a Business Acquisition Agreement. While both are crucial business documents in Malaysia, they serve distinct purposes and come into play at different stages of business operations.

• Timing and Duration: Operating Agreements govern ongoing business relationships between partners, while Business Acquisition Agreements handle one-time ownership transfers
• Scope of Coverage: Operating Agreements detail day-to-day management and profit sharing, whereas Business Acquisition Agreements focus on purchase terms, asset valuation, and transfer conditions
• Legal Requirements: Under Malaysian law, Operating Agreements are internal governance tools, while Business Acquisition Agreements must comply with strict M&A regulations
• Parties Involved: Operating Agreements bind existing business partners, while Business Acquisition Agreements involve buyers, sellers, and often third-party stakeholders