TrainRocket.com helps you document every process and policy in your business so you can onboard, train, and scale faster.
Get started with TrainRocket.com for FREE!
The corporate bylaws, or the articles of incorporation, set rules as set by the board of directors as they begin building the corporation. When the incorporation process begins, one of the first steps taken by a corporation’s founders is to draw up the company’s bylaws. The bylaws will guide the organization’s officers, directors and other key personnel as they begin managing the company.
Table of Contents
- 1 Best Corporate Bylaws Templates
- 2 Do you need bylaws for a corporation
- 3 What are corporate bylaws and why they important?
- 4 Company Bylaws Templates
- 5 What do corporate bylaws do?
- 6 Corporate Bylaws Samples
- 7 Is this content of incorporation and bylaws the same thing?
- 8 What do corporate bylaws look like this?
- 9 What should every corporation’s bylaws contain?
Best Corporate Bylaws Templates
Do you need bylaws for a corporation
Any company forming as an S-Corp or C-Corp must create bylaws. Most states require that a corporation memorialize its bylaws. Even if your state does not require a corporate bylaws template, it is a good idea to have one prepared in case you need to present it.
It is important to have a copy of this document in your files because it contains a breakdown of the corporation’s:
◉ The structure of your corporation should be determined, in part, by how long you expect it to last.
◉ The roles of your employees in your corporation.
◉ Corporate governance is how a corporation conducts its affairs.
◉ And more.
Creating sample corporate bylaws and implementing them is an important aspect of corporate compliance. By filing regularly, keeping corporate minutes, and following the bylaws of your company, you will have a chance to contribute to your company’s guidelines.
What are corporate bylaws and why they important?
A corporate bylaws example will serve as a formal “game plan” for your corporation, showing how it will run and function. The corporate bylaws also include information about the authority, rights, and duties of the officers, shareholders, and directors. While you do not have to file this document with your state, I recommend creating copies and retaining them in your own files.
The corporate bylaws template can be as long or short as the organization decides. Your company bylaws should contain the following provisions:
◉ The charter details the location, time, and frequency of shareholder, officer, and director meetings.
◉ The bylaws must specify how many directors the corporation will have and their qualifications.
◉ The corporation’s officers are listed by name and title on page four of the annual report, along with their compensation.
◉ The corporation’s fiscal year.
◉ Who’s responsible for the bylaws and how to amend them.
◉ The corporate credit department has guidelines and rules regarding the approval of loans, checks, stock certificates, and contracts.
◉ An inspection of the records book of the corporation revealed that no such project had been approved.
You can use templates or sample corporate bylaws as references when you create your own. You can also make them, along with a team, during the process of incorporation.
Company Bylaws Templates
What do corporate bylaws do?
As we have seen, a corporate bylaws example contains relevant information about the organization. It can be used as a reference to direct the way leaders and other employees function. The bylaws also serve as an organizational map for all members so that they know the organization’s goals and daily operations.
The company’s bylaws are guiding principles for the organization. Should an employee violate any bylaws and face litigation, the document can be used as a reference or evidence in a court of law. A corporation should have bylaws that protect the rights of everyone involved.
In some organizations, written bylaws will help determine how disagreement between employees or departments should be settled. You should amend and formally adopt these bylaws after they have been created.
Since the bylaws include many different duties, you should make sure that they’re clearly written. This ensures that your corporation runs smoothly and efficiently by providing a solution to different kinds of problems. Corporate bylaws are not limited to corporations; other companies and organizations can create their own bylaws as well.
Corporate Bylaws Samples
Is this content of incorporation and bylaws the same thing?
Many people confuse bylaws and articles of incorporation, but they are two different things. Bylaws cover such topics as how the Board of Directors will select officers, how they conduct their meetings, and the roles and responsibilities of officers. In contrast, the Articles of Incorporation are a simpledocument outlining the company’s structure.
The Articles of Incorporation contain information such as a corporation’s name, how many shares the company may issue, the names of all its directors, and an address. One important difference is that the Articles of Incorporation must be filed with the state. But like any of a corporation’s bylaws, this document varies from one company to another.
What do corporate bylaws look like this?
Forming a corporation can be complicated. Running a corporation is more complicated still. To guarantee that your corporation maintains a high professional level, you must put in place a number of laws. By creating corporate bylaws, you provide your company with a set of guidelines to follow.
It is not required that this be a legal document, but it contains significant information. When you file this document, the members of your corporation will have a list of rules that they must adhere to as well as specific guidelines they must follow. Use a corporate bylaws template as your reference, then draft your corporation’s bylaws.
What should every corporation’s bylaws contain?
Corporate bylaws are a fundamental legal document in any organization. The document details the daily operating procedures of the corporation and the comprehensive rules and guidelines to keep everything running smoothly. The bylaws state the responsibilities of the Board of Directors and how the corporation is organized. When drafting a bylaws document, include the common elements:
Your corporation will have a name, an address, and a purpose.
What is the name of your Corporation? State this along with its purpose in your document. This will give anyone who reads the bylaws an idea of why you created the corporation. Please provide specific addresses for your offices.
The members of the corporation
In this section, we will address the different elements of membership. This includes the types of members, how they are selected, voting rights, and how to discipline or remove them.
The names of the Board of Directors
The Board of Directors is the main governing body of the corporation. In this section of the report, you will describe the Board’s makeup. Additionally, explain whether vacancies on the Board are filled by the Board itself or are given to new members. Specify any qualifications needed by Board members, how long they serve, and how they get elected.
The officers are the members of the Board who have specific responsibilities and functions. The selection process for officers, their duties, authority, and responsibilities are listed in this section. Be sure to include all of these details for each of the officers.
If your corporation has any standing committees, include a brief description of each committee and its responsibilities in this section. You should include information on the committee’s formation, how members are appointed, and what responsibilities they have. For example, a company’s Executive Committee should have its own responsibilities, which the bylaws specify. Committees such as the Nominating Committee, Membership Committee, and Audit Committee have similar responsibilities.
Conflicts of interest
The bylaws should contain a provision for conflicts of interest. This protects the corporation from incurring any penalties from the IRS. When the IRS discovers that corporations have given unfair benefits to their members, officers, directors, or other employees, they may impose penalties on the corporations.
Additionally, if there are any regular, yearly, or special meetings to occur, including dates and times, include this information in your bylaws as well. Please include the venue and time of all Board meetings, requirements for preparation prior to informing Board members and/or committees, stipulations on attendance, and the number of Board members needed to form a quorum.
The bylaws should also contain any specific rules and guidelines for amending them. The Assembly must include who can recommend amendments and how to vote on these amendments. Bylaws should remain current in order to represent the corporation and its membership accurately. To remain relevant, you should revise your bylaws every five years or so.