From the start it's important to clearly articulate the answers to important questions about how your company will run. Who calls the shots? What's the relationship between the company and its shareholders?
A company constitution is the best way to set out these decisions and ensure employees don't stray from your vision.
WHAT DOES IT COVER?
A constitution is often provided upon incorporating a company. These constitutions are often simple and standard documents which are not specifically tailored to your company. Whilst this document might cover the basics, often this will be too general a document and can end up creating issues for your company later. A good company constitution should be attuned to your company and its unique needs so that the business runs smoothly and without any inconsistencies between the constitution and other company documents.
WHY IS THIS IMPORTANT?
'Off the Shelf' Constitutions can work for business with simple structures and shareholders agreements or arrangements. But a well written constitution will mean your company has clear and tailored structures and internal processes. This means less headaches later on.
Importantly, this will help to maintain stability as your company grows. After all a stable constitution means a stable company.