To put it simply, bylaws are a set of rules and guidelines that a company must follow.
These rules and guidelines set:
- Rules and obligations for shareholders, directors, and officers
- Annual meeting rules
- Rules pertaining to the removal of officers and directors
- Stock issuance rules
- The corporation's purpose
- How affairs will be handled
- The duties of managers and owners
These are rules that define actions that your corporation can take and specific guidelines to follow. We have an easy template that allows you to create Corporate Bylaws in minutes. If you have not incorporated your business, we also offer an easy means of incorporation.
Requirements of Bylaws
Under the general bylaws definition, there are very few requirements that must be included in your bylaws. A few of the typical requirements that are seen include:
- The name, purpose, and location of the company's office
- Members of the company
- Voting rights and selection process of members
- The name and number of the members of the board of directors
- The maximum and minimum amount of allowed directors
- How to assign new directors and the responsibility of all directors
- The length of time a person can stay on the board of directors
- The names of current officers, and the assigning and removal of officers
- The duties and responsibilities of officers, members, and directors
- The time a meeting will take place, the meeting location, and meeting terms, such as annual or special meetings
- Specific rules for amending any current bylaws
These are the basic additions that are seen in most bylaws and will help your company move forward with legal rules and guidelines in place.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.