About By-laws Preparation for Your Los Angeles Company
Preparing by-laws for your corporation or company in Los Angeles is significant in order to determine the regulations and processes of operating a business venture. Here, a committee may be set up in order to put together what the corporate executives have in mind with regards to rules and procedures of running the business.
It is important to know first the definition, functions and components of by-laws before setting up the proper committee for preparing them.
Basically, by-laws puts into view the policies and procedures involved in administering your corporation’s operations, as well as the functions of its directors and other officers.
One must note, however, that by-laws are different from Articles of Incorporation, since it is not for public records. Typically, this document need not be filed to any government unit.
After preparing the by-laws, the final draft will be made effective by the company’s board of directors and adapt them during their first board assembly. It may also be adapted first by the Action of Incorporator before being adopted by the first board of director’s assembly.
Before preparing by-laws, it is recommended that you look up the California Corporations Code, which regulates the legitimate processes of corporations and their proper management.
The basic functions of by-laws
Meanwhile, here are some of the functions of by-laws:
- By-laws serve as a functional reference for the directors, officers and the company legal counsel.
- They can use it as a guide in verifying their tasks and obligations according to the company’s Articles of Incorporation, the California Corporations Code and other statutes and regulations of the company.
- Adopting by-laws is necessary for every company or organization because it is expected by the other agencies the company or organization will be dealing with. The banks, credit or loan companies and even the IRS count on a corporation with by-laws.
- It serves as the overall statement of the corporation and its responsible individuals’ commitment and dedication. It serves as a general reference on how the company and its people would operate day by day.
Careful by-laws preparation is needed to address every vital issue of operating the corporation. Meanwhile, here are the things to do when devising such:
- Identifying the corporate offices
- Naming the shareholders
- Regulations regarding the corporation’s Stocks
- Identifying and determination of the Board of Directors
- Setting of Committees
- Identifying the executive officers needed in the corporation
- Determining the indemnification
- Setting up regulations on handling and maintaining records and reports
- Identifying some general matters
- Setting up rules for Amendments
For your corporation or company to adhere to its by-laws, it must first be drafted to satisfy the vision that you want to pursue with regard to operating your business. As it is, seeking the expertise of a Los Angeles business lawyer is vital in achieving such endeavor.
Fortunately, the Business Corporate Attorney have an experienced pool of lawyers who have the ability to outline not just by-laws, but also other important business documents such as employment manuals, employment agreements, and the like. We have helped various clients who are operating their businesses for the first time or have been running their companies for years; providing them legal help to start them off on the right foot.
To provide you with expert help in outlining your by-laws, you may seek expert legal help from our Los Angeles corporate lawyers. Call Business Corporate Attorney today at (888) 833-2528 or drop us a line on our email: firstname.lastname@example.org.
We offer legal consultation free of charge.