Corporation bylaws not only describe what a corporation plans to do, but also generally describe what a corporation will not do.
Corporation bylaws refer to a document that every corporation must have on file. This document is essentially the constitution of a company. Often written by the person who founded the company, this document describes the purpose of a company and how it will work to fulfill that purpose. Corporation bylaws not only describe what a corporation plans to do, but also generally describe what a corporation will not do during its lifetime. The individual terms or clauses of the document are also called statutes.
Company charter may be required when a company wishes to incorporate. Even when this is not the case, these documents are standard. The corporation’s charter is not usually filed with any government agency, but if it is, it is likely to become a matter of public record. In most cases, these documents are for internal use and tend to be used and distributed among private entities such as potential investors or financial institutions.
These documents can be as short as a single page or they can be very long. Extensive company bylaws are often an indication that a company is or intends to become very large. The content of the corporation’s statutory documents may vary from one corporation to another. However, there are some elements that are usually found in such documents. For starters, bylaws almost always include identifying information about a company, such as its name and contact information.
It will usually also outline the rights and powers of the people involved in the corporation, such as shareholders and directors. Various types of shareholder information are commonly included in the document. This includes the type of shares and the amount to be made public. Information about shareholders’ meetings, such as location, frequency and presiding authority, is likely to be included.
The positions and remuneration of the directors and the process of modifying the statutes can also be described. When bylaws are written, the intent is often that the details apply to the organization’s existence. This is why it is often necessary to clearly outline how fundamental changes will be handled.
Some companies may develop their bylaws from scratch. However, it is also common to use software, templates, and examples to write such documents. There are some cases where it may be necessary to hire an attorney for this task. Regardless of how the document is created or who created it, its execution is usually a group decision. In many cases, the board of directors will vote for or against a proposed project.