Preparation of Bylaws
The corporate bylaws of a business company basically outline the operating standards and procedures that a corporation will follow throughout its existence as a business entity. When forming a new corporation, the preparation of bylaws is one of the first things one needs to accomplish.
The larger the business, the more complex the corporate bylaws are likely to be. Basically, however, a typical bylaw should contain the following:
- The corporation’s identifying information such as name, address, and place of business
- The number of authorized directors and corporate officers
- Number and type of shares and stock classes issued by the company
- Procedure for director and shareholder meeting including frequency, location and protocol
- Procedure for corporate record-keeping and rules for preparation and inspection of records
- Procedure for amending articles of incorporation and bylaws
A new corporation's bylaws are usually created by the incorporator or the persons who initiated the incorporation process. The bylaws may also be written or formally adopted by the new corporation’s board of directors, as one of the board’s first actions.
Unlike the articles of incorporation which must be filed with the Secretary of State, the corporate bylaws are kept as part of the corporation’s business records which may be presented to potential investors, creditors and other entities that may be involved with the corporation.
Preparation of bylaws is an important step towards success in business. To ensure that all legal issues are covered during your incorporation process, you may consult with the experienced business attorneys of Business Corporate Attorneys.
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