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What are a company’s bylaws and what should they include?

On Behalf of | Mar 2, 2018 | Business Organizations |

One of the first steps you should take after you form your corporation is to draft its bylaws. They serve the purpose of spelling out both the procedures and standards the corporation intends to uphold during its time in existence. It also dictates what activities the company will not engage in as well.

A good rule of thumb is that the larger the business, the more complex its bylaws will be. Some of the more standard details often contained in the bylaws, though, include such details as the corporation’s name as well as details regarding the location it operates its business from.

The bylaws may also list the number of corporate officers or directors that are authorized to act on behalf of the corporation. They may also go into greater detail about what constitutes a conflict of interest as well.

Whether and how much in terms of shares of stock the corporation can issue to others may also be included in the bylaws. Details such as where shareholder or director meetings are to be held and how many votes are required to pass a resolution should also be included.

How the corporation intends to prepare, store and facilitate the audit of its records should be enumerated in its bylaws. Roles of the company’s different officers should be clearly defined within them too. Procedural information such as how amendments to bylaws or articles of incorporation should be made should be included here as well.

Bylaws for companies vary depending on how they were incorporated, their size and who is drafting them.

In learning more about your business, a St. George, Utah, business organizations attorney can provide insight as to what information should be included in your own company’s bylaws.

Source: FindLaw, “Writing corporate bylaws,” accessed March 02, 2018