Document background
The Small Business Operating Agreement serves as a foundational document for small and medium enterprises operating in Malaysia, providing essential governance structure and operational guidelines. This document is typically used when establishing a new business or formalizing existing business relationships, ensuring compliance with Malaysian legal requirements including the Companies Act 2016, Contracts Act 1950, and other relevant legislation. It addresses critical aspects such as ownership rights, management structure, financial obligations, and decision-making processes, while incorporating specific provisions required under Malaysian law. The agreement is particularly important for businesses with multiple owners or partners, as it helps prevent future disputes by clearly defining roles, responsibilities, and procedures for various business scenarios.
